– Russian Oil Now Trades Consistently Above $60: Will The West Pretend Its Sanctions Are Still In Force:
Two weeks ago, in the aftermath of the surprise Saudi/OPEC production cut which took out well over 1 million barrels in supply from the market and sent the price of oil sharply higher, we warned that with Russian Urals oil about to rise above the western price cap threshold of $60, any further increases in its price mean that virtually everyone in the anti-Russian west would be cutoff from Putin’s oil if they were to follow the imposed sanctions (and not be exempted from them like, say, Japan).
Fast forward to today when Bloomberg’s Alaric Nightingale confirms that the average price of Russian oil has — effectively for the first time — risen above a cap that was imposed by the G-7 industrialized nations.
The International Energy Agency, upon whose data the G-7 relies when reviewing the threshold, said in its monthly oil-market report earlier on Friday that Russian oil has been above the cap level of $60 a barrel since April 5. Its numbers are based on three-day rolling averages, weighted by volumes of barrels shipped.
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