Its impossible to limit price of Russian oil-Yellen
2023.01.22 07:57
Its impossible to limit price of Russian oil-Yellen
By Tiffany Smith
Budrigannews.com – According to Treasury Secretary Janet Yellen, Western nations are attempting to structure price caps on Russian refined petroleum products in order to guarantee the continued flow of Russian diesel. However, the markets are complex, and there is a possibility that things do not go according to plan.
The use of Western-supplied maritime insurance, finance, and other services for cargoes priced above $60 per barrel was outlawed on December 5 by Australia and the Group of Seven nations.
Yellen told reporters in Dakar, Senegal, that they are currently finalizing two price caps on Russian refined petroleum products like diesel and fuel oil that are set to go into effect on February 5 and a ban on diesel imports from the European Union.
She told reporters who were traveling with her in Africa that one will apply to high-value products like fuel oil and another to low-value products like crude.
Given the variety of refined products and price structures, as well as the significance of maintaining Russian diesel supply to the market, Yellen stated that setting the new price caps had proven “more complicated” than for crude.
She stated, “It’s more complicated, but we’ve been working hard to figure out how to achieve the same objectives.” Similar to the broader cap on Russian crude, she was referring to the situation here.
“You know, there’s always the potential that things may not go according to plan,” she said, adding that adjustments could still be made over time. “We’ve studied these markets very carefully and we believe that we’re going to come out with a set of caps that will achieve the same things that we’ve achieved with crude so far.”
Despite the fact that the first oil price cap only went into effect on December 5, Yellen claimed that it had been successful thus far, citing a decrease in the price Russia was receiving for.
She stated, “They’ve expressed concern about revenues, but we haven’t seen any indication that Russia is withholding oil from the market.”
