"Oil Prices Fall More Than 3% As G7 Discusses Price Cap For Russian Crude" by Alex Kimani at OilPrice.com

[Tom Nolan + 2,443]

NOTE:  Janet Yellen was previously head of THE FEDERAL RESERVE.  See her mentioned in the article.  These are the type of LUNATICS who are dictating policies and economies around the world.  These lunatics are the substance of the ClimateChange scam which is designed to control the populace...with suppressing people lives until they have nowhere to turn, but to their enslavers for 'salvation'. --TomNolan

https://oilprice.com/Energy/Oil-Prices/Oil-Prices-Fall-More-Than-3-As-G7-Discusses-Price-Cap-For-Russian-Crude.html

Oil Prices Fall More Than 3% As G7 Discusses Price Cap For Russian Crude

By Alex Kimani - Sep 01, 2022, 12:30 PM CDT

• U.S. Treasury Secretary Yellen is "optimistic" that the G7 would come to a price-capping agreement.
• Crude prices fell 3.2% on Thursday afternoon.
• Deputy Prime Minister Alexander Novak has called the G7 price cap idea a "complete absurdity" that will destabilize the entire industry.

Join Our Community

Oil is down over 3.2% on Thursday, while a pending G7 deal to cap Russian oil prices being discussed Friday could reverse that trend with Moscow now stating that it will retaliate by refusing to sell oil.  

Russia has finally come out and openly declared that price caps on its oil would be costly to energy markets. 

In a Thursday statement carried on Kommersant.ru, Russia said it would not supply oil to countries that decide to impose a price cap on its oil. 

Deputy Prime Minister Alexander Novak has termed the idea of the G7 countries to limit the price of Russian oil a "complete absurdity" that will destabilize the entire industry. 

According to the minister, Russia will not supply any oil and oil products to those countries that support the establishment of such a limit.

“We simply for such companies or countries that will impose restrictions, will not supply them with oil and oil products, since we will not work in non-market conditions,” the Deputy Prime Minister has said.

Novak has further said that Russian companies were adequately prepared for an oil embargo by the European Union and will manage to maintain oil production at the same level. According to Novak, Russia’s [production by year-end could reach 520-525 million tons comparable to last year’s production of 524 million tons.

The cap scheme, which was first brought to the table in June by the U.S. Treasury Secretary Janet Yellen, could be set at half of the Russian purchasing price although the shape of the final deal and price level have yet to be announced. The initial idea was to maintain a cap above Russia’s cost of production to keep Russian oil on the market but reduce revenues for its war coffers.  

On Wednesday, Yellen said she was "optimistic" that the G7 would come to a price-capping agreement. She also met with UK Chancellor of the Exchequer Nadhim Zahawi, who has offered British support for the plan, but noted that to be more effective, the plan would require more countries to come on board. 

While Russian crude is selling at a $20/barrel discount now, it has not worked to stymie Moscow’s oil revenues thanks to Russia finding new markets in India and China. 

New reports have emerged that during the second quarter, India slashed its crude imports from the United States by one million metric tonnes while sharply ramping up imports of discounted Russian oil. India’s energy mix now looks dramatically different from a year ago. Last year, Russian oil in India’s crude basket amounted to a paltry 2.2%, while the U.S. was 9.2%; right now, Russia accounts for nearly 12.9% of India’s crude imports, while the U.S. share has tumbled to just 5.4%

By Alex Kimani for Oilprice.com

More Top Reads From Oilprice.com:

• Honda: Lithium-Ion EV’s Won’t Reach Price Parity With Gasoline Cars
• Oil Prices Under Pressure As China Expands Covid Lockdowns
• Liberty Energy Chief Executive: Oil Is Far From Dead

[Starschy + 211]

Yellon wish will not work.

The Russian may have some additional Companies in Egypt, Morocco, south Africa - take a dart and shoot to a globe all except Europe and North America.

Those Companies import (buy) Oil Russian or a mix and sell it from Egypt to France, Greece, Bulgaria for 100% (MaxPrice). They share for every Tanker the additional profit. Bye, Bye Yellon and Biden

An Oil Price change of 3% is about 2-3 USD nothing compared to 85 - 110 USD.

Edited September 2, 2022 by Starschy

[Tom Nolan + 2,443]

https://oilprice.com/Energy/Natural-Gas/European-Comission-Calls-For-Price-Cap-On-Russian-Natural-Gas.html

European Commission Calls For Price Cap On Russian Natural Gas

By Irina Slav - Sep 02, 2022, 10:00 AM CDT

• European Commission head Ursula von der Leyen is calling for a price cap on Russian pipeline natural gas.
• According to the EC head, such a price cap would interfere with President Vladimir Putin’s attempts to manipulate the European energy market. 
• "A gas price cap can be proposed at European level, and there also is a legal foundation at European level to skim profits temporarily as an emergency measure at a time of crisis."

Join Our Community

The European Union needs to impose a price cap on Russian pipeline gas, the President of the European Commission Ursula von der Leyen said today.

According to the EC head, such a price cap would interfere with President Vladimir Putin’s attempts to manipulate the European energy market, Reuters reported.

"I firmly believe that it is now time for a price cap on Russian pipeline gas to Europe," von der Leyen said, adding that, "A gas price cap can be proposed at European level, and there also is a legal foundation at European level to skim profits temporarily as an emergency measure at a time of crisis."

The idea of taxing the profits of energy companies in Europe has been gathering momentum in recent weeks.

Gas flows from Russia to Europe have been significantly reduced over the last couple of months, with Russia explaining the reduction with technical issues, notably the absence of enough turbines for compressor stations along the way.

The EU has countered with claims that Russia is using gas as an energy weapon against Europe.

Currently, the biggest conduit of Russian gas for Europe, Nord Stream 1, is operating at 20% capacity. The pipeline ws this week shut down for a three-day maintenance round, due to restart in the early hours of Saturday, again at 20% capacity.

Von der Leyen’s call for a gas price cap comes as G7 discusses a price cap on Russian oil exports in a bid to curb Moscow’s oil revenues, which the group says would force it to end the war in Ukraine.

Moscow, meanwhile, declared that it would stop selling oil to countries that have implemented an oil price cap

"Companies that impose a price cap will not be among the recipients of Russian oil," Kremlin spokesman Dmitry Peskov said today, echoing a statement made yesterday by Deputy Prime Minister Alexander Novak.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:

• TotalEnergies Denies Accusations That It Supplied Fuel To Russian Army
• Canada Set To Miss Out On A Massive LNG Opportunity
• Europe’s Energy Crisis Has Ended Its Era Of Abundance