US Treasury's Adeyemo: Price caps could limit Russian oil revenues
|US Treasury Secretary Wally Adeyemo said on Tuesday that Russia's oil profits have likely risen despite lower crude exports, and the United States and its allies must find ways to reduce Moscow's oil revenue, possibly by capping prices, per Reuters.
Adeyemo told a U.S. Senate Appropriations subcommittee hearing.
Additional comments
US goal needs to be limiting the amount of revenue Russia earns from oil exports.
There are a number of options in terms of reducing Russia’s revenue.
There are things like introducing a price cap, such moves must be taken in cooperation with U.S. allies and partners.
Russian economy is 'getting smaller every day' due to sanctions.
Full US. trade embargo on Russia would have marginal impact on Russia's economy 'at best'.
Market implications
The news adds to the risk-off mood and weighs on the US equity benchmarks, as well as allowing the US Treasury yields to refresh an 11-year high of around 3.5%. However, major attention is on the Fed.
Read: Forex Today: Dollar retains its strength ahead of the Fed
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