OPEC+ Made The Russian Oil Price Cap Strategy Very Risky

The idea of placing a cap on the price of Russian oil as a means of reducing the country’s oil revenues was first floated by U.S. Treasury Secretary Janet Yellen in the spring. Since then, the idea has grown into a full-blown plan involving, besides the U.S., its partners from the G7 and the European Union. And it just got a lot riskier. Earlier this month, OPEC+ caused a stir in Washington by agreeing to reduce its oil production quota by 2 million bpd and its actual production by some 1 million bpd. Most of the cut would come from Saudi…