The Group of Seven Finance Ministers is expected to strengthen the plan to implement the price cap on Friday Russian oil G7 officials said Moscow’s war in Ukraine aimed to slash revenues, but to keep crude oil flowing to avoid a price hike.
Ministers from the Club of Wealthy Industrial Democracies are about to meet virtually and are seen as likely to issue a communiqué that lays out their implementation plans.
“A deal is likely,” said a European G7 official, adding that it was unclear how much details would be revealed, such as the per barrel level of the price cap, above which the compliant countries would provide insurance and finance for Russian crude. Will refuse and oil product cargo.
British Finance Minister Nadim Jahvi said in Washington on Thursday that he expected the G7 finance minister to “make a statement that would mean we can move on pace to deliver it.”
“We want to end this oil price cap,” he said at a think-tank event in Washington a day after discussing the limit with the US. treasure Secretary Janet Yellen,
Despite Russia’s falling oil export volumes, its oil export revenue in June increased by $700 million from May, as prices rose from its war in Ukraine. international energy agency Said last month.
Western leaders agreed in June to set a limit on how much refiners and traders can pay for Russian crude – a move Moscow says it will not abide by and price limits. may fail by sending oil to the states.
white House Spokesperson Karine Jean-Pierre declined to comment on the G7’s plans for the price range, saying she “doesn’t want to go ahead with that meeting”.
wide support
The G7 includes the UK, Canada, France, Germany, Italy, Japan and the United States. Some officials at the bloc have said the cap needs broader support and questioned whether it could succeed without the participation of major oil consumers China and India, who are unlikely to support the plan.
But other G-7 officials have said that China and India have shown interest in buying Russian oil at an even lower price, in line with the limit.
The cap would rely heavily on refusing London-brokered shipping insurance, which covers about 95% of the world’s tanker fleet, and finance for cargo priced above the cap. But analysts say alternatives can be found to bypass the limit and that market forces could make it ineffective.
Another G7 official said Block has a “willingness to show momentum on this”. The European UnionIt is planned to impose regional sanctions on Russian crude oil on 5 December.
The US Treasury has raised concerns that EU sanctions could trigger a scramble for alternative supplies, propelling global crude prices to as much as $140 a barrel, and that it may be seen as a way to keep Russian crude flowing through May. Price cap in .
Russian oil prices rose in anticipation of an EU embargo, with Urals crude trading at an $18-to-$25 per barrel discount to Brent crude, down from a $30-to-$40 discount earlier this year. .
Ministers from the Club of Wealthy Industrial Democracies are about to meet virtually and are seen as likely to issue a communiqué that lays out their implementation plans.
“A deal is likely,” said a European G7 official, adding that it was unclear how much details would be revealed, such as the per barrel level of the price cap, above which the compliant countries would provide insurance and finance for Russian crude. Will refuse and oil product cargo.
British Finance Minister Nadim Jahvi said in Washington on Thursday that he expected the G7 finance minister to “make a statement that would mean we can move on pace to deliver it.”
“We want to end this oil price cap,” he said at a think-tank event in Washington a day after discussing the limit with the US. treasure Secretary Janet Yellen,
Despite Russia’s falling oil export volumes, its oil export revenue in June increased by $700 million from May, as prices rose from its war in Ukraine. international energy agency Said last month.
Western leaders agreed in June to set a limit on how much refiners and traders can pay for Russian crude – a move Moscow says it will not abide by and price limits. may fail by sending oil to the states.
white House Spokesperson Karine Jean-Pierre declined to comment on the G7’s plans for the price range, saying she “doesn’t want to go ahead with that meeting”.
wide support
The G7 includes the UK, Canada, France, Germany, Italy, Japan and the United States. Some officials at the bloc have said the cap needs broader support and questioned whether it could succeed without the participation of major oil consumers China and India, who are unlikely to support the plan.
But other G-7 officials have said that China and India have shown interest in buying Russian oil at an even lower price, in line with the limit.
The cap would rely heavily on refusing London-brokered shipping insurance, which covers about 95% of the world’s tanker fleet, and finance for cargo priced above the cap. But analysts say alternatives can be found to bypass the limit and that market forces could make it ineffective.
Another G7 official said Block has a “willingness to show momentum on this”. The European UnionIt is planned to impose regional sanctions on Russian crude oil on 5 December.
The US Treasury has raised concerns that EU sanctions could trigger a scramble for alternative supplies, propelling global crude prices to as much as $140 a barrel, and that it may be seen as a way to keep Russian crude flowing through May. Price cap in .
Russian oil prices rose in anticipation of an EU embargo, with Urals crude trading at an $18-to-$25 per barrel discount to Brent crude, down from a $30-to-$40 discount earlier this year. .