How the oil sanctions on Russia work: G7 price cap #shorts

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The price cap on Russian oil aims to keep the world oil market well-supplied while simultaneously limiting Russia’s oil revenues.

Since the global oil supply is more or less fixed in the short term, any export restriction from Russia increases world oil prices, something leaders in oil-importing countries want to avoid.

The cap, which can be viewed as a partial transport embargo, allows tankers and traders to move Russian oil and still access Western tanker services if the oil is sold under the cap, which was initially set at $60 per barrel.

At the onset of the war, tanker services, most importantly maritime
insurance and financing, were dominated by Western companies. However, since the cap’s launch on December 5, this initial leverage has diminished, undermining the effectiveness of the cap.

Видео How the oil sanctions on Russia work: G7 price cap #shorts канала Energy Geopolitics