A senior official at the US Treasury Department reported that the global oil price could rise 40 percent to $140 a barrel if the proposed price ceiling for Russian crude oil and sanctions exemptions allowing shipments below this price are not implemented.
US Treasury Secretary Janet Yellen will discuss the proposed price cap on Russian oil with Japanese Finance Minister Shunichi Suzuki when they meet today, Reuters reported, citing the official.
“The goal is to set the price at a level that covers Russia’s cost of production so that Moscow is incentivized to continue exporting oil, but not at prices so high that they allow it to finance the war against Ukraine,” the US official said.
He added that Japanese officials were concerned about imposing too low a price ceiling but did not rule out a possible price range between $40 and $60 a barrel.
Washington/Sharq al-Awsat
