Oil price shock: US pushes for price cap on Russian oil by end of 2022 – ‘Insurance ban!’

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US deputy treasury secretary Wally Adeyemo confirmed Washington hopes to see a global price cap on Russian oil by the end of the year during an event held on Tuesday. Mr Adeyemo made the remark during an appearance at the Aspen Security Forum in Colorado.

He said: “We are following on what the Europeans have done.

“They introduced the idea of looking to do a price cap but they also said by December, they plan to put in place their insurance ban.

“Our goal is to make sure that an insurance ban is going into place.

“We’re in a position where there’s a price cap that can be joined onto that, that is a global one that helps to drive down global energy prices and also allows Russian energy to flow into the marketplace.”

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The announcement comes as Russia’s deputy prime minister Alexander Novak claimed Moscow will not export oil to the world market if the price is capped below the cost of production.

It also comes months after the UK revealed it would phase out Russian oil imports.

Speaking in March, Business Secretary Kwasi Kwarteng unveiled measures to “choke off a valuable source of income” to the Kremlin.

Mr Kwarteng said: “Unprovoked military aggression will not pay and we will continue to support the brave people of Ukraine as they stand up to tyranny, building on our existing sanctions that are already crippling Putin’s war machine.

“We have more than enough time for the market and our supply chains to adjust to these essential changes.

“Businesses should use this year to ensure a smooth transition so that consumers will not be affected.”

Outgoing Prime Minister Boris Johnson added: “In another economic blow to the Putin regime following their illegal invasion of Ukraine, the UK will move away from dependence on Russian oil throughout this year, building on our severe package of international economic sanctions.

“Working with industry, we are confident that this can be achieved over the course of the year, providing enough time for companies to adjust and ensuring consumers are protected.”

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It would appear a ban from the West would do little to deter some nations from purchasing Russian oil.

Russia even retained its spot as China’s top oil supplier in June.

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