International Energy Agency (IEA) chief Fatih Birol said on Sunday that curbs on Russian oil prices would likely hit Moscow’s oil and gas export revenues by nearly 30 percent in January, or about $8 billion, compared to the same period. last year. Reuters reports.

On Sunday, the European Union took another big step towards severing energy ties with Russia. The 27-nation bloc is banning Russian refined petroleum products such as diesel and joining the US and other allies in imposing a price cap on sales to non-Western countries, The Guardian reported.

EU diplomats said the price cap, agreed by ambassadors from the 27 EU countries, is $100 a barrel for premium oil products such as diesel and $45 a barrel for discount products such as fuel oil.

• The EU has set maximum prices for Russian diesel fuel and fuel oil

The European ban comes into force on Sunday, following an embargo on coal and most oil from Russia. The move is aimed at further reducing dependence on Russian energy resources and fueling the Kremlin’s war machine as the anniversary of the invasion of Ukraine approaches, the Associated Press reports.

At the same time, oil producers may have to review their production policies after demand recovers from China, the world’s second-largest oil consumer, International Energy Agency Executive Director Fatih Birol said on Sunday.

China, the world’s largest importer of crude oil and second-largest buyer of liquefied natural gas, has become the biggest driver of uncertainty in global oil and gas markets in 2023 as investors bet on the speed of its recovery after Beijing lifted restrictions related to COVID- 19. December.

“We expect China to account for about half of the growth in global oil demand this year,” Birol told Reuters on the sidelines of the India Energy Week conference.

He added that demand for aviation fuel in China is growing rapidly, putting upward pressure on demand.

“If demand grows very strongly, if the Chinese economy recovers, then, in my opinion, the OPEC+ countries will need to review their (production) policies,” Birol said.

The OPEC+ producer group angered the United States and other Western nations in October when it decided to cut output by 2 million barrels a day from November to 2023, instead of pumping more to lower fuel prices and help the global economy as advised by the U.S. . .

Birol expressed hope that a similar situation would not happen again and that OPEC+, which includes members of the Organization of the Petroleum Exporting Countries and allies such as Russia, would return to a constructive role in the market when demand improves.

Read also:

• How Russian oil gets to the pumps of the West, despite sanctions. A country that is becoming an important player in the world market