The US Treasury Department is entrenched in the intricate and exhaustive task of implementing a second phase of the price cap on Russian oil exports. Amidst a challenging economic landscape, the US is exploring ways to effectively administer the price cap, ensuring it hampers Russia's ability to profit from its oil exports without disrupting global markets. According to Eric Van Nostrand, Acting Assistant Secretary for Economic Policy at the Treasury Department, discussions are underway at the White House to develop strategies for the second phase of the Russian crude price ceiling. Nostrand indicated that Washington is prepared to bolster sanctions against those who try to bypass the restrictions on Russia. What is more, the Biden administration plans to introduce new measures to raise the cost of transporting Russian oil by sea. In addressing the latter, there are numerous levers that Washington could pull to exert pressure on Russia. For instance, the US government can introduce various obstacles against Russia's so-called "dark fleet" of tankers. This strategic move would require Moscow to channel additional resources, potentially from its military funds, to sustain the logistics. Notably, in early December of 2022, the G7 nations and their allies established a price ceiling on Russian oil at $60 per barrel. However, the past two months have seen the average price for Russia's Urals export blend surpass this limit. As of early September 2023, Russian oil has been trading above $83 per barrel, driven by the rising prices of benchmark grades and a narrowing discount relative to them. Therefore, the US is making all the effort to tighten the screws on Russian oil revenue without causing ripples in the oil market.
