The G7’s idea of ​​limiting Russia’s oil prices doesn’t work because of a lack of authority in the market, he says.

BRUSSELS (Sputnik)-Only the Organization of Petroleum Exporting Countries (OPEC) can affect the oil market, so a plan by seven groups (G7) that impose caps on Russian oil prices by introducing transport restrictions works. No, Samuel Furfari, a professor of energy geopolitics at the Free University of Brussels, told Sputnik.

The G7 countries held a three-day summit in Schloss Ermau, Bavarian, from Sunday to Tuesday. Apart from the member countries, five countries, South Africa, Senegal, Indonesia, India and Argentina, were invited as guests. G7 leaders announced a communiqué, saying that if Moscow does not agree to lower oil prices, countries will consider introducing new restrictions on Russia’s oil transport.

“The oil market is a global market of 100 million barrels per day, and this idea of ​​limiting oil prices for Russian crude oil never works. Even limiting oil prices in the 1970s at the time of the first oil shock. No attempt was made, “Fulfari added, OPEC is the only” authority “that can influence the price of crude oil.

Experts further said that most oil-producing countries had already reached their production limits and could not increase them to please the West.Even if European countries and the United States ask OPEC to “successfully” increase production and avoid it Rising oil prices It doesn’t work because “OPEC + remains unheard of US and European demands”.

If the EU and Britain ban insured tankers with Russian oil, the U.S. fears rising oil prices, the report suggests.
“OPEC + has some impact on the cost of crude oil in the market due to its allocation, but even if some members reach such a limited agreement, they have reached an agreement with the G7 that will last very long. No. Iran or Venezuela United States against Russia?? Even Emirates would refuse: they are already producing at their maximum, “Fulfari explained.
He said that US President Joe Biden called Saudi Arabia “Pariah state“No longer will Saudis forget his campaign pledge to treat them that way.
French President Emmanuel Macron during the summit Caught on the tape Biden says neither the United Arab Emirates nor Saudi Arabia can send more oil to the global market to make up for Russia’s export shortage. The G7’s idea of ​​limiting Russia’s oil prices doesn’t work because of a lack of authority in the market, he says.

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