Germany Urged to Implement Oil Price Cap at Davos Forum

"Major Oil-Consuming Countries Must Participate"

[Asia Economy Reporter Oh Gyumin] Germany urged the implementation of an oil price cap at the World Economic Forum Annual Meeting (WEF, Davos Forum), arguing that major oil-consuming countries should jointly set the price ceiling.

On the 23rd (local time), Robert Habeck, Germany's Vice Chancellor and Minister for Economic Affairs and Climate Action, attended a discussion at the Davos Forum and stated, "Market rules need to change," according to reports by the daily Frankfurter Allgemeine Zeitung (FAZ) and others.

Vice Chancellor Habeck recommended that major oil-consuming countries set a price cap and refuse to purchase oil above that price.

He said, "We need to agree that we will not pay any price," emphasizing that more countries must participate for the price cap jointly promoted by the United States and the European Union (EU) to succeed. He also added that consultations for this are ongoing.

Habeck further criticized Russia and some companies for still earning large profits through fossil fuels.

According to FAZ, Fatih Birol, head of the International Energy Agency, pointed out that revenues in the oil and gas industry surged from $1.5 trillion (approximately 1,898 trillion won) before the Ukraine crisis to $4 trillion (approximately 5,600 trillion won).