Home NewsStock Market News Yellen expressed his willingness to see China and India picking up cheap Russian crude oil | Anue Juheng – International Political Economy

Yellen expressed his willingness to see China and India picking up cheap Russian crude oil | Anue Juheng – International Political Economy

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Yellen expressed his willingness to see China and India picking up cheap Russian crude oil | Anue Juheng – International Political Economy


U.S. Treasury Secretary Janet Yellen said on Friday (11th) that the United States is happy to see India continue to buy Russian oil as much as possible, even if the price is higher than the cap set by the G7, provided that India avoids constrained Western insurance, financial and maritime services.

Yellen attended a meeting on deepening U.S.-India economic relations, and said in an interview that the oil price cap mechanism would still push global oil prices lower while curbing Russia’s income.

Yellen added that once the EU stops imports rather than resorting to price caps or deep discounts to current prices, Russia will not be able to sell as much oil as it does now.

“Once the EU stops buying, Russia will find it difficult to continue exporting as much oil as it does now, and they will have to find a lot of buyers, many of whom rely on Western services.”

India is currently Russia’s second largest oil customer, followed by China.

Final details of the price caps to be implemented by the G7 and Australia are still to be announced by the December 5 deadline.

Yellen said the cap would allow India and China, as well as other major buyers of Russian crude, to drive down prices in Russia. “Russian oil is going to have to be sold very cheaply, and we’d love to see India, Africa or China grab a bargain, which is great.”

Yellen said India and private Indian oil companies could also buy Russian oil at any price “as long as they don’t use Western services or have alternatives.”

The price cap was introduced to cut Russian oil revenue by denying Western allies insurance, shipping services and financing for Russian crude whose price per barrel exceeds the cap, while keeping Russian crude on the market. The historical average price of Russian Urals crude oil is $63-64 per barrel, which may constitute a ceiling.

Yellen’s remarks came after India’s foreign minister said last week that India would continue to buy Russian crude because it would benefit India.

India’s finance and energy ministers declined to comment on Yellen’s remarks, but other officials have said the price cap mechanism is cautious. “I don’t think we will comply with the mechanism, and Russian oil should not leave the market. Stable supply and prices are the most important,” said an Indian official who did not want to be named.

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