Oil Price-Cap Plan Spurs Fear It Could Trigger Russian Output Cut
- Up to 3 million barrels a day could be shut in, US experts say
- Russian Deputy Prime Minister Novak warns cap would backfire
A worker refuels a truck at a gas station.
Photographer: David Paul Morris/BloombergThis article is for subscribers only.
Russia could cut its oil production by as much as 3 million barrels per day if the European Union and US proceed with a plan to cap prices, market experts have warned.
The comments come as EU countries on Wednesday reached a compromise on a new package of Russian sanctions, and as OPEC+ nations including Russia agreed separately on a production cut to support global prices. The EU pact includes support for the price cap on oil sales to third countries, a measure designed to curb Russia’s revenues while keeping its oil flowing to international markets.