Tensions are running high! Washington is threatening Moscow with tougher oil trade sanctions, with Russian crude once again caught in the crossfire.
"I think we are getting closer to being able to talk about a much tougher regime in relation to both the shadow fleet and the volumes of oil that Russia is able to supply to the market," White House Deputy National Security Adviser Daleep Singh warned.
Earlier, the Group of Seven nations set a price cap of $60 per barrel on Russian oil. The G7 members also agreed to impose a $100-per-barrel ceiling on Russian-origin petroleum products, in particular diesel, which is typically sold at a markup relative to crude oil, and a $45-per-barrel cap on fuel oil.
In retaliation, Russian President Vladimir Putin signed a decree banning the supply of Russian oil and petroleum products to foreign citizens and companies if "the use of a maximum price fixing mechanism is directly or indirectly envisaged." This measure will remain in force until the end of 2024.
In addition to the price cap, the United States and Western countries have imposed restrictions on Russia’s "shadow fleet." As Bloomberg reported in July, dozens of tankers that used to carry Russian crude are now "grinding to a halt under the weight of US sanctions."
