US says oil ceiling will have no effect

The introduction by the West of the price ceiling for oil from Russia will not have any effect, since market participants will begin to act bypassing the instruments of control. Jim Rogers, a well-known American investor and co-founder of the Quantum investment fund, said this in an interview with RIA Novosti.

“In the short term… people will react and do what they have to do”he noted.

According to Rogers, “in a matter of days, people will figure out a way around energy controls or price ceilings or whatever.” Because of this, the investor believes that in the long term, the imposed ceiling on oil prices will have virtually no effect.

Rogers added that his experience in investments suggests that price controls and other artificial restrictions often do not work. This is due to the fact that “always someone will find another way.”

“So I’m skeptical about this particular move,” he concluded.

Earlier, the Minister of Energy of Saudi Arabia, Abdulaziz bin Salman, said that there were no tangible results from the introduction of a ceiling on prices for Russian oil yet.

Oil Price Ceiling

Recall that the price ceiling for Russian oil agreed upon by the G7 countries and Australia came into force on December 5. Black gold will trade at $60 per barrel. This measure does not apply only to fuel supplies via the Druzhba oil pipeline.

Press Secretary of the President of the Russian Federation Dmitry Peskov stressed that Moscow would not accept the restriction imposed by the Europeans and would conduct a prompt analysis of the situation.

The Kremlin also stated that by this decision the European Union jeopardized its energy security and will continue to live without Russian oil. According to Permanent Representative Mikhail Ulyanov, the Russian Federation has previously clearly indicated its position. Russian President Vladimir Putin said that our country would not act contrary to its own interests and those countries that would impose a price ceiling would simply not sell oil.