Russia may cut oil output due to price cap -deputy PM
MOSCOW (Reuters) – Russia will not ship oil or oil products to countries imposing a price cap on its oil exports and may also cut crude production, Deputy Prime Minister Alexander Novak said on Monday. He reiterated that Russia remained a reliable oil supplier and that the introduction of a price cap on Russian oil would trigger lower supply. Russian Deputy Prime Minister Alexander Novak reiterated on Monday the country will refrain from supplying oil to countries that agree to impose the price ceiling on the Russian commodity. “The price ceiling is just an act of unprecedented interference in the market principles of the functioning of the oil market,” Novak stressed. The deputy prime minister underscored Moscow will redirect its supplies to market-oriented partners or reduce the production of oil. The West will likely decide on the level of the price ceiling for Russian oil on November 23, the Wall Street Journal cited people familiar with the matter on Tuesday. The European Union representatives will reportedly meet the following day to reach an agreement on the price limit. According to the report, the officials will supposedly agree on the price limit setting it at around $60 a barrel before December 5, the date which will put into effect new measures decided by the United States and its allies. The day before, Moscow strongly asserted it would not supply crude oil to countries that impose a price ceiling on its commodity and could instead reduce the production of oil. December 5, when the agreed price cap is due to take effect. NN: It should get very interesting. Dec 4th OPEC meets and the 5th we will here more details as price caps on Russian oil will be attempted….. I wish them luck!