Uncertainties over the execution and potential avoidance of the G7’s widely watched price caps for purchasing Russian crude and oil products continue to obscure the expected market impact on Russian oil flows, as reported by S&P Global.
Importing Russian crude
When combined, the EU’s ban on importing Russian crude by sea and the G7 price cap are projected to cause greater turbulence in the world’s oil flows while reducing Russian production.
The US thinks that the action will enable Asian refiners to bargain for even greater discounts for Russian oil and minimise any supply loss to the market, despite the fact that major importers China and India are not joining the restriction.
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Source: S&P Global