Bloomberg reports that the G7 is considering tightening the price cap on Russian oil and is even considering replacing it with a total ban on handling Russian crude.
The market may be excited about this but I don't think it's a real risk.
“The options being considered range from largely replacing the equipment with a complete ban on handling Russian crude to reducing the price level from the current $60 ' currently to around $40, the people said. The people, who spoke on condition of anonymity to discuss sensitive discussions, warned that talks were ongoing and there is still no consensus on the next step.”
So far the price cap has largely failed with Russian oil flowing freely.
This article was written by Adam Button at www.forexlive.com.
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