The Wall Street Journal reports that the US and its allies decided to postpone capping Russian oil prices until after the US midterm elections on November 8.
The newspaper claims that the United States and its allies have been preparing since last December 5 to prohibit domestic companies from shipping and securing Russian oil shipments if Moscow did not agree to lower prices. They hoped to complete the preparations at least a month before the start of the sanctions so that oil markets could be ready.
However, according to the newspaper’s sources, the dates have not been successful, and officials do not currently have any plans to implement pricing caps prior to the United States’ midterm elections on November 8.
The Wall Street Journal reports that after OPEC+ announced production cuts on October 5, efforts to set a price ceiling halted. In reaction to this action, the administration of US President Joe Biden was compelled to develop a number of policies.
According to the newspaper, the main goal of imposing a price ceiling is to maintain the flow of Russian oil to global markets, while reducing the financial returns that Russia receives.
Prior to this, US Treasury Secretary Janet Yellen stated that efforts should be made to set the price of Russian oil at $60 per barrel.
In view of the current global unrest, the West is attempting to “curb the growth of energy and food prices to the utmost extent possible,” while also reducing Russian budget income from fuel exports in an effort to jeopardise Moscow’s ability to fund the special military operation in Ukraine.
Vladimir Putin, the president of Russia, emphasised that his country would not pay for the welfare of others out of its own pocket, and that it would not grant access to its energy resources to nations that would set price caps. The imposition of a cap on Russian fuel prices, according to Putin, is a “fraud” and “shameless extortion.”
In addition, he warned, speaking at the Russian Energy Week Forum, that the introduction of reduced oil prices involves the risk of placing price ceilings in other economic sectors, and this destroys the global market economy and pose a threat to the welfare of billions of people.
Origin: Tas.
Wall Street Journal: Until November 8th, the United States will not set a cap on the price of Russian oil.
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