Enough is enough
The UK is committed to capping the price of Russian oil. In the US-led plan, seven finance ministers plan to hold a virtual talk today about the global purchases of Russian oil. The seven ministers, or G7, are represented by a group of seven wealthy nations. Their goal is to ease energy market pressures and cut down the Russians’ price of oil. Additionally, a Chancellor at the British Embassy in Washington said that he is “confident the price cap would succeed.” However, a top Russian official said that the country would refuse to sell oil at a capped price. Looks like they don’t like to be told what to do, am I right? Anyways, the Chancellor, Nadhim Zahawi, said the plan is to make sure that we will never see an oil shock that could be worse than the one we are going through in today’s age.
There are still several questions that are still unanswered about this plan though. For example, we still do not know what price the cap would be set at. Also, even though Russia has stated that they do not want to do business with countries that set market caps, the G7s are hoping to use their leverage over the financing and insurance of Russian oil shipments to control the price of the oil. As most of the supporters in the G7 are in the western part of the world, some major buyers such as China and India have yet to make a claim on their stance, and officials say they probably won’t agree with it. Will this be a problem?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.
