• 4 minutes Energy Armageddon
  • 6 minutes How Far Have We Really Gotten With Alternative Energy
  • 10 minutes Wind droughts
  • 3 hours "Biden Is Running U.S. Energy Security Into The Ground" by Irina Slav
  • 4 hours "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 3 days "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 1 day Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 4 hours The Federal Reserve and Money...Aspects which are not widely known
  • 2 hours "Europe’s Energy Crisis Has Ended Its Era Of Abundance" by Irina Slav
  • 4 hours "Oil prices likely not responsible for inflation and other energy insights by hedge fund manager Josh Young" - Kitco News interview by David Lin
  • 4 hours Uniper is over - Germany (Government) buys the Company
  • 13 days "Forget Oil, The Real Crisis Is Diesel Inventories: The US Has Just 25 Days Left" by Zero Hedge - 5 Stars *****
  • 6 days "Dodgy Demand Data? The Oil Price Collapse Conspiracy" by Alex Kimani
  • 10 days Is Europe heading for winter of discontent with extensive gas shortages?
  • 13 days "The Global Digital ID Prison" by James Corbett of CorbettReport.com

Breaking News:

Germany’s Floating LNG Terminal Delayed

The Russian Oil Price Cap Could Be Set Between $63 And $64 Per Barrel

Western governments are in the final stages of preparing for the implementation of a price cap on Russian oil exports, Reuters has reported, noting that the price range for the cap has yet to be set.

According to one unnamed source who spoke to Reuters, the most likely range would be between $63 and $64 per barrel—the historical average price for crude. However, the report also included a warning from the World Bank that for the cap to be effective, developing economies need to be on board.

At the same time, Russia has repeatedly stated it will not sell crude to countries that enforce a price cap on its crude oil. As Bloomberg columnist Julian Lee noted recently, this is a political decision for Russia and it will not change regardless of what level the G7 set the cap at.

The U.S. administration, notably Treasury Secretary Janet Yellen, has argued that the price cap can be set at such a level as to motivate Russia to continue exporting crude oil at a rate sufficient to avoid a global oil squeeze.

Yet Russia’s firm stance on the matter seems to have given them pause. An Indian news outlet tweeted earlier today that the U.S. had been forced to scale back its oil price cap plans in the face of skepticism from the investment world and the likelihood of heightened volatility on oil markets amid still raging inflation.

"The White House and the administration are staying the course on implementing an effective, strong price cap on Russian oil in coordination with the G7 and other partners," National Security Council spokeswoman Adrienne Watson told Reuters in a statement.

"For us, success is going to be not how many countries raise their hand to say 'We endorse what you're doing, we're part of the coalition.' We're not looking for that. What we want to see is that Russian oil continues to flow into the market, and that countries are using the leverage provided by the existence of this cap to bargain lower prices,” Secretary Yellen said.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:

Join the discussion | Back to homepage

Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News