Posted on 07/08/2022 10:11:14 AM PDT by BeauBo
U.S. Treasury Secretary Janet Yellen is set to head to Asia next week. One of the topics she will be promoting is a potential cap on Russian oil prices. The Russian oil price cap was one of the main items on the G7 agenda during last month’s meeting of the world’s biggest economies...
Yellen will participate in the G20 meeting of finance ministers in Indonesia and also travel to Tokyo and Seoul to make a case for an oil price cap. China is not on her itinerary...
The Prime Minister of Japan, Fumio Kishida, suggested earlier this month that the cap should be placed at half the current price for Russian crude. Russian oil already sells at an often steep discount to alternatives, and a further cut in half would put the price close to the level Russia uses for its federal budget.
Analysts, however, argue that the price cap weapon is unlikely to work because of challenges in securing enough support for it from both consumers of oil and producers. Also, the implementation of the measure appears to be quite complicated.
The scenario that seems to be under discussion is to tie prices to insurance coverage as almost all global maritime insurance is concentrated in a handful of Western companies.
There is also the question of how Russia responds to a price cap. “Do we really think that Russia will actually accept this and not retaliate? I think this sounds like a very, very good theoretical concept but it is just not going to work in practice,” Energy Aspects’ Amrita Sen told CNBC earlier this week.
(Excerpt) Read more at oilprice.com ...
Yeah, price caps work. Not. Yellen is still fat, ugly and stupid.
It’s a trend. The economy has tanked. Demand has decreased. However, we won’t see oil future drop into the 40’s for a long time.
Joe Biden and the Soros, Democratic Cartel set this situation up to allow Putin to pay for his war. The Russians would not have started the Ukraine War without the pipeline into Europe. When the dems and Soros shutdown American Oil Production it allow Putin to start his war. The Russians are making over 1 billion dollars per day in oil sales thanks to the Dem/Soros/Biden Cartel. The forecast Famine is fast approaching allow Soros to execute the same transactions he used in WWII in Hungary.
You missed Atlantic drilling and only four new leases available for the Gulf of Mexico.
She obviously missed the first two Econ courses, has no idea of very basic supply and demand, knows zip about micro theory and macro theory, plus has no idea of econ geography. Yellen thinks if this country needs more money we just print it. She does not think about the value of a dollar vs. other currencies. I believe she knows zip about money and banking. Whatever, I feel she knows just enough to be dangerous.
True.
True.
The -customer- thinking they set a price cap. This is our Secretary of the Treasury folks.
That’s like me setting a price cap on 2022 F-150 pickups. I refuse to pay more than 25k. Morons.
the arrogance of the people in the US government is astonishing. Used to be we influence the world by how moral our system was but now we figure we just bully them because were “a super power“. And I think the rest of the world is fed up with it
No
Ya, she’s a bright one. In case she missed the memo, Russia redirected their oil elsewhere. They don’t give a flying leap what Yellen says or thinks.
“USA will appear to be a micro-managing interventionist bully”
Um, isn’t the current definition of the US already?
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