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Western allies aim to agree on Russian oil price cap Wednesday
Price cap on Russian oil a ‘fantasy’: Phil Flynn
PRICE Futures Group senior market analyst Phil Flynn argues a universal price cap on oil has ‘never succeeded’ as world leaders move closer to finalizing plans for one on Russian oil amid the country’s continued invasion of Ukraine.
The U.S. and its allies are seeking to agree on a level for a price cap on Russian oil as soon as Wednesday, with officials discussing setting it at around $60 a barrel as the group rushes to put the plan into place before Dec. 5, according to people familiar with the talks.
The price cap, which the people said could still be set as high as $70, is at the center of the West’s efforts to sanction Russia for its invasion of Ukraine. The untested sanctions design is set to begin on Dec. 5 after facing delays this fall, as the Group of Seven advanced democracies has struggled to iron out the final details of the complicated plan.
Ambassadors from the 27 European Union member states are scheduled to meet Wednesday, when they will try to come to an agreement on a price. The bloc must agree on the price cap unanimously and diplomats warned that may prove difficult. The G-7 is aiming to approve the cap in sync with the EU.