{"id":208068,"date":"2022-07-11T10:52:01","date_gmt":"2022-07-11T08:52:01","guid":{"rendered":"https:\/\/climatescience.press\/?p=208068"},"modified":"2022-07-11T10:52:02","modified_gmt":"2022-07-11T08:52:02","slug":"biden-seeks-a-global-agreement-cap-russian-oil-prices","status":"publish","type":"post","link":"https:\/\/climatescience.press\/?p=208068","title":{"rendered":"Biden Seeks a Global Agreement Cap Russian Oil Prices"},"content":{"rendered":"\n
\"\"<\/figure>\n\n\n\n

<\/p>\n\n\n\n

Essay by Eric Worrall<\/strong><\/p>\n\n\n\n

Biden thinks he can reduce the money flowing to Russia\u2019s military by organising a global oil purchasing cartel.<\/p>\n\n\n\n

US, Allies Discuss Capping Russian Oil at $40-$60 a Barrel to Cut War Financing<\/strong><\/p>

US also weighing enforcement tools, including sanctions<\/p>

Secondary sanctions seen as a measure of last resort<\/p>

By Alberto Nardelli<\/a>, Jennifer Jacobs<\/a>, and Annmarie Hordern<\/a>
7 July 2022, 01:25 GMT+10<\/p>

The US and its allies have discussed trying to cap the price on Russian oil between $40 and about $60 a barrel, according to people familiar with the matter.<\/p>

Allies have been exploring several ways to limit Russia\u2019s oil revenues while minimizing the impact on their own economies in discussions that began in the run-up to the Group of Seven summit. <\/p>

At the summit in Germany on June 28 leaders agreed to explore options to cap prices by banning insurance and transportation services needed to ship Russian crude and petroleum products unless the oil is purchased below an agreed price.<\/p>

A more specific threshold would depend on market conditions when a cap is agreed and those could change significantly. Before Monday\u2019s mini-rout in headline oil prices, Russian crude was probably trading around the $80-a-barrel mark. Information about transactions in the nation\u2019s barrels has become less visible since the invasion.<\/p>

\u2026<\/p>Read more: https:\/\/www.bloomberg.com\/news\/articles\/2022-07-06\/us-and-allies-discuss-capping-russian-oil-prices-at-40-60<\/a><\/cite><\/blockquote>\n\n\n\n

This cartel has no chance of working, like a lot of Biden\u2019s economic ideas. India makes no secret they are buying all the oil Russia can ship<\/a>, and are probably even shipping some of their imported Russian oil to Europe. Hunter Biden\u2019s Chinese oil company<\/a> may be doing likewise<\/a>.<\/p>\n\n\n\n

A purchasing cartel can only work if buyers can live without the commodity being targeted, long enough for the seller to be forced to lower prices. Given that Russian energy exports have continued without significant interruption since the start of the Ukraine conflict, I\u2019m guessing Russia will laugh off such threats.<\/p>\n\n\n\n

The only way the USA could unilaterally choke off the supply of Western money to Russia is to crash the global price of oil, by abandoning US domestic green policies, and encouraging US producers to flood the global market with a deluge of cheap US oil. But this doesn\u2019t seem likely to happen anytime soon \u2013 Biden can\u2019t even muster the political courage to face down greens in his own administration, to lower gasoline prices for Americans.<\/p>\n\n\n\n

<\/p>\n\n\n\n

<\/p>\n\n\n\n

via Watts Up With That?<\/mark><\/em><\/strong><\/p>\n\n\n\n

July 10, 2022<\/p>\n\n\n\n

\n
Biden Seeks a Global Agreement to Cap Russian Oil Prices<\/a><\/blockquote>