Oil prices have risen as the first strong measures to limit Russia’s oil profits over the war in Ukraine took effect. The new sanctions bring uncertainty about how much crude could be lost to the global economy through Russian retaliation or evasion.
— but not by as much as many expected at the start of the war almost 10 months ago.
The cap has a grace period for oil that was loaded before Monday and arrives at its destination before Jan. 19 to minimize disruption on oil markets. The idea is to keep Russian oil flowing while reducing the Kremlin’s income, though the immediate hit may be limited because Russian oil already was trading around where the cap was set. The U.S. and Europe decided toADVERTISEMENT
Ukraine’s President Volodymyr Zelenskyy had called for a cap around $30 per barrel. That would be near Russia’s cost of production, letting Russian oil companies earn enough only to avoid capping wells that can be hard to restart. Russia needs some $60 to $70 per barrel to balance its budget.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Kremlin rejects EU oil price cap: 'Europe will live without Russian oil'The Kremlin on Saturday rejected EU efforts to hit Russia's top earner by placing a price cap on its oil and said 'Europe will live without Russian oil.'
Read more »
G7 price cap on Russian oil kicks in, Russia will only sell at market priceThe G7 price cap on Russian seaborne oil came into force as the West tries to limit Moscow's ability to finance its war in Ukraine, but Russia has said it will not abide by the measure even if it has to cut production
Read more »
Ukraine Says Oil-Price Cap Won’t Dent Russia’s Ability to Fund WarUkraine denounced a price cap on Russian oil and said it would fail to deprive Russia’s military machine of funds, as Moscow said it could stop supplying consumers in response.
Read more »
Boycott and price cap on Russian crude to drive oil pricesThe decision of Saudi-led OPEC+ to stand pat on production won’t move the needle on...
Read more »
Live blog: Zelenskyy says Western price cap on Russian oil 'not serious'Ukraine says level of price cap on Russia oil isn't serious, and US expects reduced tempo in fighting to continue for months as conflict rolls into its 284th day Follow our live coverage:👇
Read more »