Oil price cap enforced on Russian crude oil

A price cap was imposed on Russian crude oil in addition to Russian oil products on Saturday during G7 meetings. Russian oil price was set to be capped at $60 per barrel, in an attempt to reduce Russian revenues.

The Executive Director of International Energy Agency (IEA), Fatih Birol said the decision is not expected to affect oil supply in global markets. Birol added that “there are some loopholes, some challenges for the better functioning of the oil price cap.”

Furthermore, the group of G7 also said it will go back to supporting investment in the gas sector. It was said to be a ‘temporary’ solution to supplement potential market shortfalls.

Environmentalists were concerned the bloc will compromise limiting global warming and achieving net-zero carbon emissions by 2050. Birol has reiterated that “the clean energy transition is happening and much faster than many think.”

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