Russian President Vladimir Putin has acknowledged the rising risks of inflation and has urged the government and central bank to keep the situation under control, as soaring prices could pose a threat to living standards and his upcoming re-election bid, while Russia's budget is also strained due to its military operation in Ukraine.
India's intake of Russian crude oil is seen as mutually beneficial for both countries, South Korea and Japan manage to secure enough Saudi crude despite output cuts, and executives state that the G7 price cap is not intended to halt the flow of Russian oil.
The G7 and its allies have halted regular reviews of the Russian oil price cap scheme, allowing Russian producers to sell oil above the limit due to a rally in global crude prices and the use of non-Western ships and insurance services.
The extension of voluntary oil production cuts by Saudi Arabia and Russia has caused oil prices to surge above $90 a barrel, threatening an inflationary spike that could disrupt central banks' plans to wind down interest-rate hikes, particularly for the Bank of Canada.
The West needs to increase pressure on Russia's economy by intensifying sanctions and implementing stricter controls on Russian exports, oil price caps, and financial transactions, while also uncovering hidden stashes of money and putting Russia under a full financial embargo.
Saudi Arabia's energy minister, Prince Abdulaziz bin Salman, stated that the decision to extend crude oil supply cuts with Russia is not about raising prices, but rather about making the right decision at the appropriate time based on data and clarity, as oil prices near $100 per barrel and analysts predict further increases.
Russia has implemented a temporary ban on gasoline and diesel exports, excluding four ex-Soviet states, to stabilize its domestic market and reduce prices for consumers.
The recent global supply concerns caused by Russia's fuel export ban are driving up oil prices, counteracting the demand fears driven by macroeconomic headwinds and high interest rates.
Oil prices rose over 1% after Russia implemented an export ban on diesel and gas, which aims to replenish domestic supply and reduce prices, potentially impacting global oil supply and driving up energy prices, excluding demand shrinkage, while also predicting easing gas prices in the US except for some western states.
Higher oil prices, boosted by supply cuts from Saudi Arabia and Russia, may benefit Russia's oil revenues by allowing them to sell crude over the $60-a-barrel price cap imposed by sanctions.
Oil prices are rising again after a short pause, driven by Russia's temporary ban on fuel exports and concerns of low supply, with analysts predicting it could hit $100 a barrel for the first time in 13 months.
Almost three-quarters of Russia's seaborne oil exports are avoiding Western insurers, allowing the country to bypass the G7 price cap and increase its oil export revenues by $15 billion this year.
Russian President Vladimir Putin has called on the government to respond more promptly to rising fuel prices, urging closer collaboration with oil companies to lower costs amidst an export ban and reports of shortages in some regions.
The US Justice Department is investigating whether Murtaza Lakhani, founder and CEO of oil trader Mercantile & Maritime Group, violated G7 price cap and Western sanctions against Russia by trading Russian oil, which should be traded at $60 per barrel or less under the sanctions.
The G7-led price cap on Russian oil has significantly reduced Russian revenues and it is important to continue imposing severe costs on Russia over its war in Ukraine, according to US Treasury Secretary Janet Yellen. She also emphasized the need to support Ukraine and mitigate the impacts of Russia's war while depriving Russia of the funding it needs to wage the war.
The Biden administration is implementing new measures to increase the cost of Russia's attempts to bypass the price limit on its oil, aiming to enforce the price cap more strictly and send a clear message to Russia that their expansion attempts will face a decisive response, as the West believes that the diverted funds could be used for military equipment.
The United States has imposed sanctions on two shipping companies for violating the oil price cap designed to diminish Russia's energy export revenue and prevent them from benefiting from soaring energy prices.
Russian crude oil producers are able to ship to refiners in China and India at the cheapest costs in almost a year due to the increasing number of vessels plying these routes, allowing them to earn more than the imposed $60 per barrel cap on Russia through sanctions.
