Senior US Treasury official: Failure of oil price cap on Russian oil could bump up prices to $140

Dhwani Mehta FXStreet

A senior U.S. Treasury official said on Tuesday, “failure to implement proposed oil price cap on Russian oil, with an exemption for purchases below cap, could see the oil price rise to around $140/barrel.”

Additional comments

Yellen to discuss proposed cap on Russian oil price with Japan’s Suzuki, goal is to minimize negative impact on Japan, others, while curtailing Russian revenues.

Japan has expressed concerns about proposed price cap being set too low, has not rejected range of $40-$60/barrel.

US Treasury Secretary Janet Yellen will discuss implementation of the proposed oil price cap with Japanese Finance Minister Shunichi Suzuki when they meet later on Tuesday

Yellen to tell Japanese Finance Minister Suzuki that the US remains very strong despite inflation and drop in Q1 GDP.

Market reaction

WTI is bouncing back towards $100.50 on the above comments, having hit daily lows at $99.73 in the last hour.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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