Experts say a price cap on Russian crude may only have a muted effect on Moscow, and instead serve to benefit China and India, two of its biggest buyers.
But China, India, and other buyers in Asia won't feel obligated to commit to the price cap because it may not be any lower than what they currently pay, oil historian Gregory Brew told Insider. Russian Urals crude is already selling for roughly $25 below Brent prices, or about $60 per barrel. "What it suggests is that [Russia's customers] are able to negotiate very favorable terms from Russian oil companies, who have to sell in order to maintain operations," he said."Even if the price cap is not totally effective at driving down the price at which Russia can sell, it is likely that India, China, and other customers will be able to bid lower for Russian crude.
The only incentive for Asian buyers have to follow the cap is to maintain access to European shipping and insurance services. Next month's round of EU sanctions will ban those services on Russian oil cargoes, even for buyers outside of Europe, unless they commit to the price cap.
Simple Russia do not agree to it, END OF 🙄🤣
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