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Yellen defends Russian oil price cap in wake of OPEC+ retaliation
Biden looking at ‘alternatives’ after OPEC ‘disappointment,’ doesn’t rule out easing Venezuela sanctions
President Biden said Thursday he had a reaction of “disappointment” after OPEC+ decided to cut oil production. Biden said the U.S. is looking at “alternatives” and that “we haven’t made up our mind yet.”
Treasury Secretary Janet Yellen touted efforts by the U.S. and Europe to implement a price cap on Russian oil and choke off a massive amount of revenue for Moscow, despite retaliatory production cuts from OPEC+ this week.
Speaking at the Center for Global Development think tank on Thursday, Yellen said the price ceiling on Russian oil – which will impose a ban on transporting it by sea to other countries above the limit – is designed to keep the oil flowing into global markets at lower prices, "particularly benefiting low- and middle-income countries."
European Union countries on Wednesday agreed to impose the price cap, which the Group of Seven wealthy nations want in place by December 5, in order to penalize Russia for the war in Ukraine. Yellen has been a major advocate for the price cap, with the Treasury trying to onboard as many nations as possible to join the buyers' cartel.
Treasury officials previously argued the price limit will reduce the revenue the Kremlin generates from oil by tens of billions of dollars annually and will also discourage production.
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