AVN 67.60 Increased By ▲ 0.50 (0.75%)
BAFL 30.99 Decreased By ▼ -0.01 (-0.03%)
BOP 4.91 Increased By ▲ 0.01 (0.2%)
CNERGY 3.74 Decreased By ▼ -0.04 (-1.06%)
DFML 14.03 Decreased By ▼ -0.40 (-2.77%)
DGKC 41.11 Decreased By ▼ -0.74 (-1.77%)
EPCL 46.58 Increased By ▲ 0.01 (0.02%)
FCCL 11.60 Decreased By ▼ -0.09 (-0.77%)
FFL 5.03 Decreased By ▼ -0.04 (-0.79%)
FLYNG 5.85 Increased By ▲ 0.05 (0.86%)
GGL 10.34 Decreased By ▼ -0.08 (-0.77%)
HUBC 68.04 Increased By ▲ 0.04 (0.06%)
HUMNL 5.74 Decreased By ▼ -0.02 (-0.35%)
KAPCO 28.02 Decreased By ▼ -0.08 (-0.28%)
KEL 2.26 Decreased By ▼ -0.03 (-1.31%)
LOTCHEM 25.02 Decreased By ▼ -0.03 (-0.12%)
MLCF 21.45 Decreased By ▼ -0.24 (-1.11%)
NETSOL 87.66 Increased By ▲ 1.66 (1.93%)
OGDC 99.30 Increased By ▲ 6.92 (7.49%)
PAEL 11.00 Decreased By ▼ -0.09 (-0.81%)
PIBTL 4.26 Increased By ▲ 0.02 (0.47%)
PPL 81.12 Increased By ▲ 0.97 (1.21%)
PRL 13.23 Decreased By ▼ -0.41 (-3.01%)
SILK 0.88 Decreased By ▼ -0.02 (-2.22%)
SNGP 43.85 Increased By ▲ 0.38 (0.87%)
TELE 6.12 Increased By ▲ 0.16 (2.68%)
TPLP 15.66 Decreased By ▼ -0.07 (-0.45%)
TRG 118.99 Increased By ▲ 3.98 (3.46%)
UNITY 14.01 Increased By ▲ 0.16 (1.16%)
WTL 1.23 Increased By ▲ 0.07 (6.03%)
BR100 4,171 Increased By 47 (1.14%)
BR30 15,253 Increased By 323.5 (2.17%)
KSE100 41,523 Increased By 332 (0.81%)
KSE30 15,663 Increased By 168.9 (1.09%)
Follow us

MOSCOW: Russia, the world’s biggest exporter of energy, could cut oil production and will refuse to sell oil to any country that imposes the West’s “stupid” price cap on Russian oil, President Vladimir Putin said on Friday.

The Group of Seven major powers, the European Union and Australia last week agreed to a $60 per barrel price cap on Russian seaborne crude oil after EU members overcame resistance from Poland. “As for our reaction, I have already said that we simply will not sell to those countries that make such decisions,” Putin told reporters in the Kyrgyz capital, Bishkek.

“We will think, maybe, even about a possible, if necessary ... reduction in production.”

Putin, who rules the world’s second largest oil exporter after Saudi Arabia and the largest gas exporter, said Russia had a production agreement with other members of the OPEC+ oil producers’ club, so such a drastic step was still only a possibility.

“We are thinking about this, there are no solutions yet. And concrete steps will be outlined in a decree from the president of Russia that will be released in the next few days,” Putin said.

Selling oil and gas to Europe has been one of the main sources of Russia’s foreign currency earnings since Soviet geologists found oil and gas in the swamps of Siberia in the decades after World War Two.

Russia: price cap is ‘dangerous’ and will not curb demand for our oil

White House spokesman John Kirby said Putin’s threat was not unexpected but that it remains to be seen what action Moscow ultimately takes, telling reporters in a news briefing: “We’re not surprised by those comments. It’s actually not really new.”

Putin dismissed the West’s attempt to squeeze Russian finances, saying the $60 price cap corresponded to the price at which Russia was selling oil.

“It all boils down to about this figure,” Putin said. “So don’t worry about the budget.”

The price for Urals blend crude on Friday was around $53 per barrel, according to Reuters data.

The Kremlin chief cautioned that attempts by the West to impose a price cap would lead to the global collapse of the oil industry and then a catastrophic rise in prices.

“This will lead to the collapse of the industry itself, because the consumer will always insist that the price be lower. The industry is already under-invested, under-funded, and if we listen only to consumers, then this investment will be reduced to zero,” Putin said.

“All this will lead at some stage to a catastrophic surge in prices and to the collapse of the global energy sector. This is a stupid proposal, ill-conceived and poorly thought-out.”

Comments

Comments are closed.

Russia could cut oil production over West’s ‘stupid’ price cap

Rupee falls 0.35%, settles at 276.28 against US dollar

PM Shehbaz orders establishment of relief fund to aid Turkiye

Up to $5 mn smuggled into Afghanistan from Pakistan daily: report

Earthquake rescue work moves slowly in Turkiye, Syria as death toll passes 5,000

Intra-day update: KSE-100 Index up over 500 points

Debt reprofiling viable option for Pakistan under IMF watch: report

Islamabad court rejects Sheikh Rashid’s bail petition

IMF should work with Pakistan to protect the deprived: Human Rights Watch

Toshakhana case: Islamabad court defers Imran Khan's indictment

High-income earners directed to pay 50pc of super tax liability