LONDON, October 25. /TASS/. The world still needs Russian oil to flow to the market despite sanctions imposed by the West and the intention to introduce an oil price cap, Executive Director of the International Energy Agency (IEA) Fatih Birol said on Tuesday.
The world will still need Russian oil to flow to the market despite a price cap, with between 80% to 90% an "encouraging level" to meet demand, Reuters quoted Birol as saying during the Singapore International Energy Week.
Global oil consumption is expected to add 1.7 mln barrels per day in 2023, which is why Russian oil is still required, he said.
Following a meeting of finance ministers from the Group of Seven in September, the G7 club agreed to introduce a proposed price cap on Russian oil to limit the country’s revenues from its export. To do this, they want to create a broad international coalition and prohibit the provision of any services for the sea transportation of Russian oil if it is sold at a price higher than the limit agreed upon by such a coalition.