Russian oil is continuing to rise, defying an increasingly redundant price cap put in place by the Group of Seven and its allies.
(Bloomberg) — Russian oil is continuing to rise, defying an increasingly redundant price cap put in place by the Group of Seven and its allies.
Crude from the country’s western ports has rallied along with headline futures in recent days, Argus Media Ltd. data show. Russia’s flagship Urals grade is trading at $85.35 a barrel from the Baltic port of Primorsk and $86 from the Black Sea port of Novorossiysk.
G-7 officials have for weeks indicated they have no intention of revisiting the cap for now despite spot prices surging far above the threshold for Russian exports, which is $60 a barrel when Western shipping or insurance services are involved. The measure is designed to limit Moscow’s oil revenues while keeping the nation’s barrels flowing.
To avoid falling afoul of sanctions, European insurers and shipowners need to receive a sheet of paper pledging a cargo was purchased below $60 a barrel. Most rarely have any true insight into a shipment’s value, so many are continuing to provide services despite current price levels.
Read More: Tanker Tricks on the High Seas Expose Shadowy Russian Oil Trade
–With assistance from Ewa Krukowska and Alberto Nardelli.
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