Price Cap On Russian Oil Worked Better Than Expected: BP

The price cap on Russian oil has worked far better than anyone had expected and G7 governments approve that Russian oil flows have increased to India while keeping limiting Moscow’s oil revenues, BP chief economist Spencer Dale said.

• “All the capitals in the West I have spoken to have been delighted by this increase in India’s imports”, Dale said.
• The point of the price cap was to keep Russian oil flowing to the global market to avoid any shortage but to do so in a way that “Russia wasn’t able to monetise those flows at very high prices”, he added.
• “The US treasury has estimated that something like 25% of per quarter of the crude which has been exported from Russia been transported using western transport and insurance, which implies that it is happening below the price cap", Dale said.