International Energy Agency: The European embargo on Russian oil will lead to an unprecedented state of uncertainty

The International Energy Agency has announced today that the soon-to-enforce European ban on seaborne exports of crude oil and Russian petroleum products will lead to unprecedented uncertainty.

Reuters quoted the Paris-based energy market watchdog as saying in its monthly oil report: “The European Union’s embargo on imports of crude and Russian oil products, and the ban on marine services, in addition to the Group of Seven imposing a ceiling on the prices of those sales will put more pressures on global oil balances, especially on diesel markets, which are already suffering from severe shortages.”

The Agency considered that setting a proposed ceiling for oil prices could help ease tensions, but there are still countless ambiguities and logistical challenges, stressing that the uncertainty has never been at such a level.

The Kremlin had confirmed earlier that Russia would stop selling oil to any country that implements the price cap proposal, while Russian Deputy Prime Minister Alexander Novak stressed that “imposing restrictions on Russian oil prices will destroy the market,” noting that other oil producers do not respond positively to this absurdity.

NR