The West caps the price of oil – and then it goes up
AThe role of a price cap is generally to ensure lower prices: the oil price cap, which went into effect on Monday along with an EU embargo on Russian oil transported by ship, appears to be having the opposite effect. the oil prices In any case, on Monday under the new regulations, prices initially rose sharply, at times to $87.97 per barrel (159 liter barrel) for the North Sea Brent variety and to $82.20 for the American West Texas Intermediate variety, before there was a countermovement.
How does that fit together? The aim of the political regulations is to limit Russia’s oil revenues. That’s why she European Union decided on an embargo on imports into their territory, although initially with various exceptions, especially for oil that comes by pipeline. In addition, the price cap of $60 per barrel for Russian Urals oil also applies to companies from the EU, the United States, Canada, Japan, Australia and Great Britain that transport oil on their ships or insure the cargo.
