FAST FIVE: Oil Prices Slide After EU Appears To Fold On 'Tough' Russian Crude Price Cap Scheme

Published by on

Mnuchin panned the proposal to cap prices as “not only not feasible, I think it's the most ridiculous idea I've ever heard.” Bloomberg reports that the European Union watered down its latest sanctions proposal for a price cap on Russia's oil exports by delaying its full implementation and softening key shipping provisions.

5 – the date oil sanctions are due to kick in – and unloaded by Jan.

And sure enough prices are starting to tumble.

EU ambassadors are still scheduled to meet on Wednesday with the aim of approving the cap, and to also discuss the price cap level.

Allies had previously discussed setting the cap somewhere between $40 and $60 per barrel – a range going from Russia's cost of production to pre-war levels – but people familiar with recent discussions said it would likely be slightly above that.

Categories: ZH