Why the G-7 Cap on Russian Fuel Prices Will Be Harder Than it Looks
- Russian fuel exports represented about 9% of 2022 sea trade
- Tanker freight for refined fuels more complex than crude
This article is for subscribers only.
The Group of Seven industrialized nations is 24 days from imposing a cap on the prices at which Russia’s oil refineries are allowed to sell the fuels they make. It’s another historic moment for the global petroleum market.
If all goes to plan, buyers of Russian fuels will only be allowed to tap vital G-7 services including ships and tanker insurance for the cargoes if they pay below as-yet-unspecified price caps. Such measures began for crude oil on Dec. 5, setting an upper threshold of $60 a barrel.