A $65-$70 Price Cap On Russian Oil May Be Too High To Hurt Moscow

The planned price cap of $65-$70 per barrel for Russia’s oil is not expected to immediately shrink Putin’s oil revenues, considering that this is more or less the price that buyers currently pay for Russian crude, multiple industry sources familiar with the transaction prices told Reuters. The primary goal of the price cap is to reduce the oil income available to the Kremlin that funds its war in Ukraine. The other key objective of the price cap is to keep Russian oil flowing by restricting maritime transportation services when the…