EU Products Ban, G7 Price Cap Face Challenges

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With an EU ban and G7-led price cap on Russian petroleum products slated to come into effect Feb. 5, the products market is facing even more uncertainty than that which loomed over crude ahead of the Dec. 5 price cap (and EU ban) on Russian crude exports. For one, the EU’s reliance on diesel imports from Russia is higher: Nearly 10% of EU-27 gasoil/diesel requirements are imported from Russia. The range of product specifications and regional pricing benchmarks also make setting a price cap on products sold via G7-linked shipping and insurance services far more complicated than for crude.

Sanctions, Ukraine Crisis, Oil Trade, Diesel/Gasoil, Oil Products, Oil Trade, Policy and Regulation
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