Oil prices soar
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Russia. With discounted oil already finding takers amid Western sanctions, Moscow could see a sudden surge in demand, boosting both its revenues and geopolitical sway.
The US isn’t budging from its opposition to a lower price cap on Russian oil sales, people familiar with the matter said, dampening European hopes that leaders meeting for a Group of Seven summit in Canada will agree to a cut.
The combined net profits of Russia’s oil and gas companies nearly halved in the first quarter from a year earlier, while petroleum revenues for the budget have been falling with the decline in oil prices in recent months.
Most G7 members are prepared to lower the Russian oil price cap from $60 to $45 per barrel even without U.S. support, Reuters reported on June 12.
Rather, it is geopolitical factors—specifically, escalating tensions in the Middle East—that are unsettling markets and pushing prices higher.
Most countries in the Group of Seven nations are prepared to go it alone and lower the G7 price cap on Russian oil even if U.S. President Donald Trump decides to opt out, four sources familiar with the matter said.
Israel's "preemptive" strikes against Iran targeting the country's nuclear program and killing top military officials could have far-reaching implications for Ukraine and could boost Russia's ability to continue its full-scale invasion,
The European Union wants to lower a cap on the price of Russian oil to deprive the Kremlin of profits to fund its war in Ukraine.
A lower price cap for Russian oil proposed by the European Commission to punish Moscow for its war in Ukraine will not contribute to the stabilisation of global energy markets, Kremlin spokesman Dmitry Peskov said on Wednesday.
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