On Friday the BBC reported that the EU, supported by the USA, had suggested there should be a cap on the price paid for Russian oil exports on the world market of US$60 per BBL. The European Union, the UK, the G7 group of countries, plus Australia have commented this 60 dollar ceiling “would stop Moscow profiteering from its war against Ukraine”. Friday’s price for Brent crude was about US$85.

The US Treasury Secretary, Janet Yellen, went on to comment that fixing this cap would deny Russia the funds it needs to keep fighting its unjustified war in Ukraine, while preventing “skyrocketing oil prices around the world”. Experts however believe that while this move would not critically damage Russia’s oil revenues, it would put a “significant dent” in their oil revenues.

Russia responded by saying it would not supply countries who agreed and would instead focus on other markets, such as China and India.

In related news from China, there are sporadic signs that the country-wide street protests recently seen in China may have caused a turn-around in China’s “Zero-Covid” policy , which would stimulate demand for oil supplies in the country, although there have been no official confirmation from the Chinese government.