Why Putting A Price Cap On Russian Oil Won’t Work

The oil price cap: this is the biggest energy weapon that the U.S. appears to have against Russia. First floated by Italian PM Mario Draghi earlier this year with regard to all oil producers, the idea was later taken up by Treasury Secretary Janet Yellen in discussions with the European Union on how to punish Moscow. Now, it’s been taken up by the G7. The news that the G7 is considering putting a ceiling on the price for Russian export crude garnered a lot of coverage, but there was little in the way of explaining how exactly a price cap…