The G7 countries held a three-day summit from Sunday to Tuesday in the Bavarian Schloss Elmau. Apart from the member states, five countries — South Africa, Senegal, Indonesia, India and Argentina — were invited as guests. The G7 leaders issued a communique, saying the countries will consider introducing new restrictions on the transportation of Russian oil if Moscow does not agree to reduce oil prices.
"The oil market is a world market of 100 million barrels/day and this idea of capping oil prices for Russian crude would never work. It was not even attempted to cap oil prices in the 1970s at the time of the first oil shock," Furfari said, adding that OPEC is the only "authority" that could be able to influence prices of crude.
The expert went on to say that most of the oil-producing countries are already at their production ceiling anyway and they could not increase it to please the West. Even if European countries and the United States "ask nicely" OPEC to increase production to avoid an increase in oil prices it will not work as "OPEC+ remains deaf to the requests of the US and the Europeans."
"The OPEC+ has some influence on the cost of crude oil on the market thanks to their quotas, but they will not come to an agreement with the G7 that would last very long if ever some members did reach such a limited agreement. Do you see Iran or Venezuela helping the US against Russia? Even the Emirates would refuse: they produce at their maximum already," Furfari explained.
He noted that while US President Joe Biden does not want to make Saudi Arabia a so-called "pariah state" anymore, the Saudis will not forget his election campaign pledge to treat them just so.
During the summit, French President Emmanuel Macron was caught on tape telling Biden that neither the United Arab Emirates nor Saudi Arabia could pump more oil to the global market to offset the shortfall in Russian exports.