Western countries impose price limits on Russian seaborne crude oil and oil product exports

The price restrictions and EU embargoes imposed by Western countries on Russian sea freight crude oil and oil exports came into effect on December 5, 2022 and February 5, 2023, respectively. "Price limit" is an effective strategy in the West to restrict Russia's oil export revenue under the conditions of considering oil price levels and oil market supply and demand balance. Its goal is to strike a balance between stable oil prices and reducing Russia's oil export revenue. The impact of the "price limit order" on Russian crude oil exports is relatively limited, but oil exports may face significant impacts, and Russia will be forced to increase crude oil exports to compensate for the reduction in oil exports; Europe may face a shortage of diesel in the short term; In the later stage, international diesel prices may rise, leading to an increase in cracking price differences. The future operation of international oil prices will be significantly affected by the negative impact of Western price limit guidelines, while accelerating the reshaping of the global maritime oil trade pattern. The "price limit order" marks a new stage in the pricing power game between the West and resource countries, and suggests that Chinese oil companies explore the establishment of RMB settlement mechanisms in oil and gas trade.