Russian Oil Price Cap Kicks In

OilPrice.com: Price Cap On Russian Oil Comes Into Effect

The price cap of $60 per barrel for Russian oil devised by the G7 and supported by the European Union comes into effect today, aiming to curb Russia’s revenues from oil exports while keeping flows into the international market flowing.

The cap was agreed upon just before the deadline by the European Union after holdouts including Poland and Estonia refused to agree to the originally proposed range of between $65 and $70 per barrel that came from Washington. In addition to the price cap, the EU has imposed an embargo on maritime imports of Russian crude, effective today.

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WNU Editor: I said it before, and I will say it again. This price cap makes no sense. The G-7 are implementing policies that will kill investment in fossil fuels, which means energy shortages in the future and sky-high prices. The $60 oil cap is set so that no Russia oil will be sold to the West for the forseeable future. What this means is countries like China will get a steady supply of oil, at a discount, that will place it in a far more favorable economic and competitive position against the industries of the West and others who have signed onto this price cap.

Update: Some are not paying attention to the West's price cap on Russian oil .... Tankers seen heading to Russia as oil price cap goes into effect on exports (CNBC). More here .... India signals it will continue to buy oil from Russia (AP).

Update #2: See video below: