Reuters: Washington is afraid of a 40% rise in oil prices due to anti-Russian sanctions

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Reuters: Washington is afraid of a 40% rise in oil prices due to anti-Russian sanctions
Reuters: Washington is afraid of a 40% rise in oil prices due to anti-Russian sanctions
12 July, 10:18PoliticsPhoto: 1MI
The United States fears that the price of oil will rise by 40% to $140 a barrel if it fails to set a ceiling on the price of Russian raw materials and restrictions that prevent Moscow from entering into contracts for insurance and transportation of fuel above this threshold.

According to Reuters, US and Japanese Treasury Ministers Janet Yellen and Shunichi Suzuki will discuss capping oil prices from Russia on July 12. Tokyo did not oppose the $40-60 per barrel price cap range, but according to the publication, the country fears that the price cap is too low. The parties intend to set a price that would cover Moscow's marginal costs for the production of raw materials so that Russia remains interested in exporting oil, while the proceeds from it will not have to finance a special operation in Ukraine.

It's worth reminding that in the United States, purchases of Russian oil at a huge discount at below market prices were considered as an alternative to the oil embargo. In May, the US authorities proposed to oblige foreign companies to buy Russian oil at reduced prices under the threat of sanctions. At the same time, they wanted to transfer money for Russian oil to excrow accounts with limited use.

Russia, contrary to Washington's plans, will not sell oil at unprofitable prices, said Dmitry Peskov, a spokesman for the president: when demand decreases in some conditions, it increases in others, "there is a reorientation of flows, a search for the most favorable conditions".

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