ICYMI – Six EU countries call for lowering of G7 price cap on Russian oil

Info via Reuters overnight, story is here.

In summary:

The well-supplied global oil market minimizes the risk of market disruption from a reduced price cap.

• Six EU nations, Sweden, Denmark, Finland, Latvia, Lithuania, and Estonia, advocate for lowering the $60 oil price cap to weaken Russia’s war funding.
• G7 price caps have not changed since their implementation, while Russian oil prices have stayed below the cap.
• Ukrainian officials highlight a strong link between oil revenues and Russia’s military aggression.
• The six EU countries noted that the international oil market is currently well-supplied, reducing the risk of a supply shock from a lower cap. Additionally, they argued that Russia’s limited storage capacity and reliance on energy exports mean it would continue selling oil even at lower prices.

Brent update, gap higher to begin the week:

I posted on Monday about the move higher:

• US and UK tighten sanctions on Russian oil industry

The news broke on Friday:

• US will impose sanctions on 180 vessels transporting Russian crude, dozens of traders and two major oil companies

This article was written by Eamonn Sheridan at www.forexlive.com.