Greek shipowners are not worried about the possible fallout for them from the G7 and EU price cap on Russian crude oil, French Liberacion reported, quoting the president of the International Chamber of Commerce and the largest shipowner Greek.
The embargo on the maritime transport of Russian oil will have a positive effect: we shipowners will become richer. Transport costs, which are already skyrocketing, will increase even faster! Nicolas A. Vernicos told French media in an interview.
Vernicos went on to add that Greek shipowners will abide by the embargo and the price cap, but noted that “boycotts result in higher prices for goods imported or exported from the embargoed country.”
Oil prices fell after the embargo was introduced because traders had already factored in both the EU sanction and the G7 price cap, and concluded that they, in particular the ceiling, will not have much immediate effect on the availability of Russian oil.
Russia, however, is currently considering its response, and one of the options considered is to set what would effectively be a floor for the price of its oil, while another is to suspend oil exports to countries respecting the ceiling, even if they try to import it from third countries and not from Russia. A third option is to suspend oil shipments under contracts with a cap clause, even with countries that are not part of the G7.
Meanwhile, fund manager Eric Nuttall reminded those watching oil prices that no matter what, the world remains undersupplied of oil, suggesting prices could still rebound.
“We have had declining inventories throughout this year, despite the largest release in SPR history [Strategic Petroleum Reserve], both in the world and in the United States And at the same time, Chinese demand has been suppressed by one and a half million barrels per day. So fact number one, the market remains undersupplied,” Nuttall told BNN Bloomberg this week.
By Charles Kennedy for Oilprice.com
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