Price Cap Will Not Affect Crude Oil Supply – IEA

Last updated May 21, 2023

The International Energy Agency (IEA) does not expect moves by the Group of Seven nations to counter the evasion of price caps on Russian energy will change the supply situation for crude oil and oil products, the IEA’s Executive Director, Fatih Birol has said.

The G7, the European Union and Australia agreed to impose a $60-per-barrel price cap on Russian seaborne crude oil and also set an upper price limit for Russian oil products to deprive Moscow of revenues for its invasion of Ukraine.

The G7 will enhance efforts to counter evasion of the caps “while avoiding spillover effects and maintaining global energy supply”, the group said on Saturday, without giving details, during its annual leaders’ meeting.

The IEA, which provides analysis and input to the G7 on energy, does not see the enhanced enforcement of the price caps affecting the global oil and fuel supply, Birol said on the sidelines of the summit.

“Any significant changes in the markets as always we will reflect in our analysis, in our reports, but for the time being I don’t see a reason to make a change in our analysis,” he said.

Reuters/Hauwa Abu