Failure to implement Russian oil price cap could jack up oil prices - US official - SABC News - Breaking news, special reports, world, business, sport coverage of all South African current events. Africa's news leader.

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The global price of oil could surge by 40% to around $140 per barrel if a proposed price cap on Russian oil is not adopted, along with sanction exemptions that would allow shipments below that price, a senior US Treasury official said on Tuesday.

US Treasury Secretary Janet Yellen will discuss implementation of the US price cap proposal and global economic developments with Japanese Finance Minister Shunichi Suzuki when they meet later on Tuesday, the official said.

Japanese officials had expressed concern about the price cap being set too low, but had not rejected a potential price range of $40 to $60 per barrel outright, the official said. The United States and other Group of Seven rich nations -Britain, Canada, Germany, France, Italy and Japan, along with the European Union – in June agreed to explore imposing the cap to reduce Moscow’s revenues and deplete its war chest, but details are still being worked out.

Treasury modeling showed that implementing the sanctions without the price exception could trigger significant increases in the price of crude oil, potentially sending it to around $140 per barrel from around $100 per barrel now, the Treasury official said.

 

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