WASHINGTON, Sep 2 – PRIME The desire of the United States and its allies to impose a price limit on Russian oil could lead to destabilization of the entire oil market, Ryan Sitton, former commissioner of the Texas Railroad Commission (the oil regulator of the country’s largest oil producing state), told RIA Novosti.
“Everything will end up with the price fixing for the entire market. The problem is that this will destabilize it again. If I can buy Russian oil at $60 a barrel, then why should I buy from someone else,” he explained.
According to the expert, destabilization of the market will lead to a reduction in investments in the oil sector, since investors “will have the opportunity to buy cheap Russian oil.”
In addition, the intention of the United States to completely replace Russia in gas supplies to the European market could aggravate the energy crisis and fuel shortages in all regions. According to Sitton, US oil will be able to replace Russian only if Washington sends all export volumes to the EU, and this will inevitably lead to a reduction in supplies to other parts of the world and an increase in commodity prices.
On Friday, the finance ministers of the G7 countries agreed to impose a “ceiling” on Russian oil prices, and also confirmed their intention to limit sea transportation of fuel purchased at prices exceeding the limit.