
US, G7 Discuss “Capping” Russian Oil Price At $40-60, A Move Which Could Send Oil Soaring Up To $380
US, G7 Discuss “Capping” Russian Oil Price At $40-60, A Move Which Could Send Oil Soaring Up To $380 Last week we admitted that we hadn’t spent much time discussing the timesink idiocy of the Biden/G7 “Russian oil price cap” idea because well, it is idiotic as Rabobank’s Michael Every explained… The ‘oil cap’ is simple in theory: the G7 will refuse to provide insurance to any vessel that carries Russian oil unless the cargo is sold with an agreed price cap. Yet it won’t work and will just push oil prices higher. Russia will never agree. China and India will never agree either. Russia and China may offer their own underwriting services, which would force the West into physically blocking cargoes and confronting China – as a Russian-oil carrying ship is stopped in the US, says the Wall Street Journal. Plus, the G7 are already not taking Russian oil: they are taking Russian oil from India and China that is being on-sold. … and it appears that finally even the dumbest people on earth, i.e. career politicians and economists, have figured it out. Last Thursday, Reuters reported that according to EU officials, the biggest price cap proponents – the governments of Germany and other European Union countries – voiced “caution” in a closed-door meeting about price caps on Russian oil, a day after the Group of Seven economic powers agreed to urgently start work on the matter. Here is the truncated timeline for those who missed it: on Tuesday G7 leaders agreed to explore “the feasibility of introducing temporary import price caps” on Russian fossil fuel, including oil, and tasked ministers to evaluate the proposal urgently. But just one day later, Germany’s envoy to the EU told his counterparts in a restricted meeting that the world should be “realistic”