Russian Oil Price Cap Efficacy Needs Reviewed: UK Minister

Britain is discussing the effectiveness of the price cap on Russian oil with G7 members due to the shift in global oil prices according to UK treasury minister Joanna Penn.

• Penn said the price cap had proven successful in keeping oil markets supplied while reducing Russia's revenues.
• "We've got to keep its efficacy under review. We've got to think about how we can ensure that we consider how the response will evolve, and therefore how the price cap and policy should evolve in response to that," Penn said.
• Russia has managed to move most of its exports by domestic or non-Western tonnage allowing it to circumvent the cap leading many to question its purpose.
• Urals has been above the $60/bbl cap since mid-July.
• Penn said Britain continued to honor the $60 price cap, but was discussing the "whole policy" with its partners, including the United States, and was keeping it under "constant review." Penn added that a formal review around the level of the cap is part of current discussions.