August 18, 2022

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US thinks maximum price for Russia oil - policy

US thinks maximum price for Russia oil – policy

Despite sanctions, Russia still makes billions in oil and gas sales. The US government wants to replace it with a price cap for Russian oil. Sounds crazy, but it can work.

Rising oil prices are plaguing Joe Biden everywhere. Last week, when US President Rehoboth strolled to the beach from his holiday home on the beach in shorts and a blue polo shirt, a crowd of journalists was waiting for him and the usual question: what is he doing about the gas price hike. ? Recent Idea: The US government can keep the federal tax below 20 cents per gallon (3.8 liters).

Rising oil prices are plaguing Joe Biden everywhere. Last week, when US President Rehoboth strolled to the beach from his vacation home on the beach in shorts and a blue polo shirt, a press conference awaited him at the end of the walk and the usual question: what is he doing about the gas price hike. ? Recent Idea: The U.S. government could suspend federal taxes from as low as 20 cents (3.8 liters) per gallon. But Democrats are under great pressure to act on their frustrated electorate. That is why the government has already freed up oil reserves, allowed the addition of high ethanol content in the summer, and is threatening measures against oil companies for usury. Experts expect petrol prices to rise to $ 6 a gallon (equivalent to $ 1.50 a liter) at the start of the holiday season. It may seem cheap to us, but it is a symbolic frontier for Americans. Meanwhile, occupier Vladimir Putin is benefiting from rising oil prices. This is the scene that America wanted to avoid at any cost. Our sanctions were aimed at hitting the Russian economy, not ours. But four months after the start of the war, doubts are growing as to whether it will succeed. Russia had already suspended it in March. A European embargo will raise oil prices, and Treasury Secretary Janet Yellen has warned: “It will affect Europe and the rest of the world.” Yellen has an idea to implement square rounding. He wants to set a price cap for Russian oil – in other words, he is creating an anti-Russian buyer cartel. It is not clear how it should be. He said alone that the United States was “very active” in putting that proposal on the table at the G7 summit in Schloss Elmau. The idea is to protect Russian oil supplies to world markets, while restricting Putin’s revenues and preventing new price rises. This idea is not entirely new. Italian Prime Minister Mario Tragi proposed something similar to the import of natural gas from Russia, and when he met with Python in Washington he questioned the setting up of a “buyer cartel” for oil. Claudio Kalimberti, an oil expert at Ristad Energy, praises former chairman of the European Central Bank, “Tracy understands that things are better than ordinary politicians.” He thinks the European import ban is a reaction because Putin will sell his oil to India and China at a discount. In the end, the EU only strengthens the Asian competition by not attacking the occupiers in Moscow, warns Kalimberdi: “Now, Europe is shooting itself in the foot.” Brent price to pay for Russian oil or a fixed price of $ 50 for 159. Litter barrel – which is cheaper. Kalimberty believes Putin risks selling his oil at a higher price elsewhere. He says Japan and South Korea will immediately join in such price controls. “China and India can probably say 51 per cent, but it takes two months to deliver to India and two weeks to deliver to Europe,” he argues. So, “basically, Putin will be forced to sell to Europe.” Yellen thinks the same way. There may be forex insurers for the pricing model, without which no oil tanker can sail at sea because accidents can easily cause billions in damage. They may be barred from insuring oil exports above the price limit. Since most shipping insurers are based in Europe, exports from Russia would not be possible without a discount. He also doubts whether energy-hungry Asian nations will help Putin. “Why do China and India want to pay more for Russian oil? Those countries want to negotiate,” Andrew tweeted. Treasury Secretary Yellen has also raised the possibility of sanctions against countries that do not follow US price guidelines. Its plan could be embedded in an EU embargo, exempting Russian exports below the embargo. Then oil will continue to enter the world market, but Putin will no longer be as profitable as before. The Germans see the mechanism as complicated, according to the financial institution Bloomberg. However, Europeans seem to be particularly concerned about another issue: the sanctions that the 27 EU member states have negotiated so hard will not hold a review.

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