The price itself has yet to be determined, the source said, adding that, according to the G7, “this will increase market stability and simplify compliance to minimize the burden on market participants.” Earlier, a price range in the mid-60s was mentioned as a possible target for the ceiling, as it represented the range in which Russian oil has traded before the latest rally. It took the G7 several months to get to this point, with skeptics warning along the way that it might not be the wisest idea, especially after Russian President Vladimir Putin made it clear that Russia would not sell oil to countries that impose a cap and substitute price Minister Alexander Novak reiterated the statement. The World Bank was the latest to warn the G7 that a cap won’t work unless more countries join it. The implied countries are likely China and India, the biggest buyers of Russian crude at the moment, both of which have refused to participate in a price ceiling system. Initially, the integration of China and India was a top priority for the G7 group, but that appears to have changed, according to US Treasury Secretary Janet Yellen, who spearheaded the price cap effort. “For us, success will not be how many countries raise their hand to say ‘We support what you are doing, we are part of the coalition.’ “What we want to see is that Russian oil continues to flow into the market and that countries use the leverage that having this cap provides to negotiate lower prices,” Yellen said last month. By Irina Slav for Oilprice.com More top reads from Oilprice.com:
