Louisiana Light • 1 day | 82.28 | -0.08 | -0.10% | |||
Bonny Light • 1 day | 87.69 | +0.78 | +0.90% | |||
Opec Basket • 2 days | 84.80 | -0.65 | -0.76% | |||
Mars US • 8 hours | 78.16 | +0.71 | +0.92% | |||
Gasoline • 15 mins | 2.627 | +0.015 | +0.58% |
Bonny Light • 1 day | 87.69 | +0.78 | +0.90% | |||
Girassol • 1 day | 86.95 | +1.03 | +1.20% | |||
Opec Basket • 2 days | 84.80 | -0.65 | -0.76% |
Peace Sour • 24 hours | 74.40 | +0.02 | +0.03% | |||
Light Sour Blend • 24 hours | 75.70 | +0.02 | +0.03% | |||
Syncrude Sweet Premium • 24 hours | 84.65 | +0.02 | +0.02% | |||
Central Alberta • 24 hours | 74.00 | +0.02 | +0.03% |
Eagle Ford • 8 days | 76.81 | +0.85 | +1.12% | |||
Oklahoma Sweet • 2 days | 76.50 | +0.00 | +0.00% | |||
Kansas Common • 1 day | 70.50 | +0.00 | +0.00% | |||
Buena Vista • 1 day | 84.06 | +0.02 | +0.02% |
Oil continues to gain momentum…
The economic growth in China…
Julianne Geiger
Julianne Geiger is a veteran editor, writer and researcher for Oilprice.com, and a member of the Creative Professionals Networking Group.
The G7’s oil price cap may have went into effect on Monday, but Russia’s response is to consider putting a “price floor” under its crude oil exports, two officials familiar with Moscow’s plan told Bloomberg on Tuesday.
Russia had already said it would not ship crude oil to anyone playing along with the G7 oil price cap, and that it could even possibly respond by cutting oil production rather than ship its oil at too severe a discount, as dictated by the price cap.
The G7 price cap landed on $60 per barrel—above the level where Russian crude is currently shipping today. But that hasn’t stopped Russia from threatening to cut its oil production and creating a floor for its crude oil prices, or limiting the discount that Russian crude is trading to Brent.
ADVERTISEMENT
The G7 price cap was created ostensibly to restrict Russia’s revenue from its crude oil sales, although capping its oil at $60 per barrel would surely fail in its mission. And if Russia were to restrict output in response to the price cap like it said it would, oil prices could climb higher, blunting even more any efforts to restrict Russia’s revenue as it continues what Russia refers to as its special military operation in Ukraine.
Russia has promised it would refuse to sell crude except at market price. What’s more, it said it would keep to that promise even if it means cutting production.
ADVERTISEMENT
The EU and the G7 said they would review the cap every two months, with the first review in mid-January.
The current cap on crude prices will be followed in February by a price cap on Russia’s petroleum products, although that price has yet to be set.
By Julianne Geiger for Oilprice.com
More Top Reads From Oilprice.com:
ADVERTISEMENT
ADVERTISEMENT
Julianne Geiger is a veteran editor, writer and researcher for Oilprice.com, and a member of the Creative Professionals Networking Group.
Colonial Shuts Key Fuel Pipeline To The U.S. Northeast
Venezuela Suspends Oil Exports
Saudi’s Won’t Let Oil Stay At $75: Pioneer CEO
Oil Drops On Huge Unexpected Crude Inventory Build
OPEC’s Second-Largest Oil Producer Issues Arrest Warrant For Donald Trump
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
The materials provided on this Web site are for informational and educational purposes only and are not intended to provide tax, legal, or investment advice.
Nothing contained on the Web site shall be considered a recommendation, solicitation, or offer to buy or sell a security to any person in any jurisdiction.
Trading and investing carries a high risk of losing money rapidly due to leverage. Individuals should consider whether they can afford the risks associated to trading.
74-89% of retail investor accounts lose money. Any trading and execution of orders mentioned on this website is carried out by and through OPCMarkets.
Merchant of Record: A Media Solutions trading as Oilprice.com
Russia responding to market manipulation attempt by the EU...
Can't be true?
What will the other OPEC producers do?
They do are aware this is an experiment that sooner or later it will be imposed on them too.
A price floor, that is way to genius.
Can you imagine if other producers start doing it unofficially?
What a blow it would be?
If there is a price cap there must be a price floor...
The Eurocrats will get insonias tonight...
What if OPEC decides to be generous and just universally prices oil at 100$?
That's what they wanted...
It will be quite interesting how much that floor will be... Will there be 2 floors, like one for the EU and one for the wider world...