Senior US Treasury official: Failure of oil price cap on Russian oil could bump up prices to $140
|A senior U.S. Treasury official said on Tuesday, “failure to implement proposed oil price cap on Russian oil, with an exemption for purchases below cap, could see the oil price rise to around $140/barrel.”
Additional comments
Yellen to discuss proposed cap on Russian oil price with Japan’s Suzuki, goal is to minimize negative impact on Japan, others, while curtailing Russian revenues.
Japan has expressed concerns about proposed price cap being set too low, has not rejected range of $40-$60/barrel.
US Treasury Secretary Janet Yellen will discuss implementation of the proposed oil price cap with Japanese Finance Minister Shunichi Suzuki when they meet later on Tuesday
Yellen to tell Japanese Finance Minister Suzuki that the US remains very strong despite inflation and drop in Q1 GDP.
Market reaction
WTI is bouncing back towards $100.50 on the above comments, having hit daily lows at $99.73 in the last hour.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.