Russia bans oil exports to countries and companies with price caps starting in February. It appears in a decree issued by President Vladimir Putin on Tuesday.
– There is a bit of a mess on the oil market. This means that the countries that have previously been dependent on buying Russian oil must turn to other sellers, says Christian Kopfer, commodity analyst.
The decision may also mean that the prices are now moving away, according to Christian Kopfer:
– I am thinking of the statement from Russia that they are considering reducing their production quite meaningfully, they are talking about half a million barrels per day. Russia, together with Saudi Arabia, are the most important exporting nations when it comes to crude oil, so a reduction in production in this situation means risks of oil prices going off the rails.
The decision is expected to enter into force in February and will apply for five months, until July 1, 2023.
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