President Vladimir Putin's point man on energy and Russian Deputy Prime Minister Alexander Novak said even if Russia has to trim production, it won't sell oil subject to a Western price cap, Reuters reported on Sunday.
The Group of Seven G 7 nations has agreed to put a price cap of $60 per barrel on Russian crude oil, and the European Union has decided on the same price. The cap will ban companies from shipping, insuring, or financing Russian oil unless the oil is sold below $60 a barrel.
Novak, Russia s official in charge of the country's oil, gas, atomic energy and coal, said that they are working on mechanisms to prohibit the use of a price cap instrument, regardless of what level is set.
Novak said that we will sell oil and petroleum products only to countries that work with us under market conditions, even if we have to reduce production a bit.
Price Action: OPEC has decided to maintain current oil production targets, including an existing policy of reducing oil production by 2 million barrels per day.
The United States Brent Oil Fund BNO closed 1.27% higher on Tuesday, while the Vanguard Energy Index Fund ETF VDE closed 1.34% higher.