Posted on 10/20/2022 12:37:50 PM PDT by kiryandil
The US has told OPEC that a proposed cap on Russian oil prices won't later be repurposed to also target the cartel, a Treasury official told Reuters.
The official also said that the price cap plan isn't the beginning of a buyers' cartel that's meant to counter OPEC's sway over oil markets.
The US reassurances could help remedy increasingly strained relations between the US and de facto OPEC leaders Saudi Arabia. Earlier this month, OPEC and allies non-member allies like Russia slashed its oil output quota by 2 million barrels a day despite pleas from Washington to boost production.
The White House accused the so-called OPEC+ coalition of aligning with Russia, and President Joe Biden warned Saudi Arabia would face consequences.
US officials have said the OPEC+ cut was retaliation for efforts to cap Russian oil prices. OPEC members have said the quota reduction wasn't a political decision. Saudi Arabia has also said the actual reduction in supply would be closer to 1 million bpd because some OPEC members have been pumping below their quotas.
The price cap is meant to coincide with the EU's embargo on seaborne Russian oil imports that will go into effect on December 5. The idea is to avoid a supply shock that will boost oil prices by creating a loophole in the EU embargo to keep Russian crude flowing to global markets while also limiting Moscow's revenue.
The G7 and the EU have approved it but key details remain, while Russia's top oil customers like China and India haven't signed on.
(Excerpt) Read more at markets.businessinsider.com ...
The check is in the mail, US officials say...
Trust us!
Idiots should quit digging the hole deeper. Right after the demented president ranted about visiting “consquences” on the OPEC nations, he announced a proposed price cap on oil from Russia. Then to make sure the OPEC people get the point, he goes out of his way to assure them, “Oh no, we’re not planning to do this to you though.”
Everything the Vegetable head has done has backfired. I expect this ludicrous scheme to backfire- further crippling the US, and somehow filling Vlads pockets with billions of more energy money….and increasing the cost to Americans. Watch.
Hammers tend to be used more than one time.
This is getting to be fun to watch!
cause he doesn’t want them to shut the spigot OFF!!!
The US is losing credibility as other nations see what they do
Drill baby drill. It’s the ultimate way to “cap” prices.
They’ve been talking about this “Russia oil-price cap” since March.
its going nowhere.
Without India and China on board (not to mention scores of other countries) the oil price cap scheme is a laughingstock. With around 200 nations in the world today, the US with its clique of a handful of sycophantic countries is looking pretty ridiculous as it preens and postures as if the rest of the world was behind it. Is that snickering I hear?
i tried that oil price cap strategy at my local filling stations and they laughed their asses off before they kicked me out ... i must be doing it wrong ...
Another form of sanction that will backfire......
What can Joey F’up today?
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