Two months after the world’s major economic powers imposed a price cap on Russian lubricants, the price of Brent lubricants rose in the global market today.
Its Deputy Prime Minister Alexander Novak has announced that countries that directly or indirectly adhere to the price ceiling policies for Russian lubricant oil will not be sold from Russia, and based on this, the production of 5 lakh barrels per day will be reduced from the coming March.
Brent Lubricating Oil
Brent crude oil rose 2.7 percent to $86 a barrel on the world market today as Russia’s announcement is expected to further disrupt global oil supplies.
The 500,000 bpd cut is equivalent to about 5 percent of Russia’s oil output, and it is notable that Russia has taken the decision to cut its output without consulting the non-OPEC group of oil producers known as OPEC+, which includes Saudi Arabia.
It is worth noting that Russia, which is financing the war in Ukraine, has imposed a ceiling on its oil prices to reduce its financial strength.