Oil (BZ=F) rose on Monday as Western countries pushed prices above $60 a barrel and Russia banned some oil to curb the Kremlin’s oil war.

Oil rose slightly to $88.30 after OPEC+ agreed not to change its current production target as his G7’s $60 price target for Russian oil took effect.

Investor Interactive Chief Investment Officer Victoria Schooler said: “There are many areas of activity in the oil market right now, and given the continued slowdown in the economy, the outlook for Chinese and global demand is optimistic. There are uncertainties surrounding

Cartels, meanwhile, are waiting to see if Russia’s new regulations will at least affect market prices.

The European Union on Friday agreed to impose tariffs along with Britain, Australia, Canada, Japan, and the United States, and her 27 EU member states also imposed restrictions on Russian oil at sea.

Read more: FTSE rises as EU sanctions on Russian oil begin

With this limit, Russian oil sold above this price will not be shipped by G7 and EU vessels, insurers, and lenders.

Russia, the world’s second-largest crude oil producer, said it would not accept the price hike and threatened to halt oil exports to countries that agreed to the measures.

British Petroleum (BP.L) shares rose on hopes of rising oil prices and rising oil demand as China eases its stance on Covid-19.

AJ Bell Chief Investment Officer Ross Mold said: Twice.

Many investors in oil and gas stocks had a busy year as oil prices surged in the first half of 2022 and Brent fell from $78 to $127.It had roller coaster-like ups and downs.

Russia will certainly feel the measure, but the shock will weaken Russia’s resolve to sell oil to other markets such as India and China, which are currently the largest buyers of Russian crude oil.

Read more: CBI warns UK could be in recession by end of 2023

OPEC and its allies agreed to cut current production quotas as the G7/EU’s $60 price target for Russian oil exports took effect, but to stabilize markets, according to Neil Wilson. said he would not hesitate to adjust the market manager. Final & Markets.com analyst said:

Russian Deputy Prime Minister Alexander Novak said the Russian government would not export oil to countries participating in the price hike.

Asked on a conference call how the oil price cap would affect the war, Kremlin spokesman Dmitry Peskov said: We can fully respond to this and do not prejudice such behavior.”

World oil prices rose after Russia’s oil prices rose.

Oil prices rose on Monday after the US and other European countries imposed quotas on Russian oil.

One of the toughest sanctions ever imposed on Russia was a restriction on the import, purchase, and financing of Russian crude oil in response to an expansion of Ukraine’s supply of natural gas.

Brent, the world’s most traded crude, rose 2.7% to $87.95 a barrel in London.

The restrictions marked a turning point for Europe, which began to distance itself from Russian resources and helped stabilize the Russian economy after sanctions.

However, there is a loophole that allows Russia’s oil exports to be supplied to non-European countries if the oil price does not exceed $20 per barrel.

Spike in Russian oil prices: 5 things to know

Al Jazeera answers five key questions to better understand the implications of EU and G7 actions.

A G7 (G7) price cap and outright EU ban on Russian offshore oil are due Monday, as the two blocs seek to limit the Kremlin’s ability to continue funding the war in Ukraine.

On Friday, the Group of 7, the European Union, and Australia agreed to cap Russian oil prices at $60 a barrel. In May, the European Union announced a ban on Russia’s use of offshore oil. 27 countries have also announced that the import ban on petroleum products will come into effect on February 5.

More than two-thirds of Russia’s oil imports to the EU are subject to the ban, according to Charles Michel, president of the European Council. He called the ban a symbol of EU unity and tweeted that it would “put maximum pressure on Russia to end the war”.

The EU oil embargo also covers EU operators who insure and finance ships carrying Russian crude around the world but does not cover imports of Russian oil entering the bloc via pipelines.

Through the Druzhba pipeline, which opened in 1964, Russian oil was supplied to many countries in Central and Eastern Europe, including Germany, Poland, Hungary, Slovakia, the Czech Republic, and Austria.

Germany, Poland, and Austria have backed the embargo and promised to stop importing oil from Russia altogether before the end of this year.

What do price bans and restrictions mean in the EU oil market?

The 27-member bloc was mostly dependent on Russian oil supplies before Russia’s war in Ukraine. In 2021, the EU imported $74.8 billion worth of crude oil and petroleum products from Russia.

According to the International Energy Agency (IEA) report, Russia’s oil imports amounted to 2.2 million barrels per day, of which 700,000 barrels per day were imported via pipelines and 1, 2 million by-products were imported via petroleum products.

The European Union is expected to trade 1 million barrels of crude oil and 1.1 million barrels of petroleum products per day due to sanctions imposed on Russian crude and offshore petroleum products in February, the International Energy Agency has announced. energy.

About 10% of revenue from the Druzhba pipeline will be temporarily withheld.

Mats Cuvelje, a Brussels-based lawyer who trades across borders with the EU, told Al Jazeera that the EU’s superficial ban on Russian oil would have a significant impact on supply and demand in the bloc in short term.

“These regulations have been in place for six months, giving EU countries enough time to seek alternative oil supply routes,” he said. The bloc will focus on replacing oil supply routes from Russia with routes from countries such as the Middle East so that the EU does not face an oil shortage.

By bemaad

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