CEM REPORT | The G7 nations have vowed to stand with Ukraine “for as long as it takes”. The leaders at a meeting on Monday in Germany further promising to tighten the squeeze on Russia’s finances with new sanctions that include a proposal to cap the price of Russian oil.
The G7 nation which comprises of the US, Canada, Italy, France, Germany, the United Kingdom, and Japan are seeking means to impose oil price cap aims to hit Russian President Vladimir Putin’s finances to the war in Ukraine while actually lowering energy prices.
The US revealed that the objective of the G7 leaders have been to directly hit Putin’s revenues, particularly through energy, while also minimizing the spillovers and impact on the G7 economies and the rest of the world.
Reports also reveals that G7 countries intends to partner with countries like India to limit Putin’s revenue generating capacity.
Thus far, this has caused the price of Brent crude to rise by $1.23 a 1.07 percent increase to $116.32 per barrel, while the United States West Texas Intermediate crude up by $1.24 a 1.13 percent increase to $110.79 per barrel.
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However, analysts have said this may not be productive as two of the world’s largest importers, which are not G7 members, China and India, have become Russia’s biggest customers.
Also, recession fears seem to have taken the backseat amid pressing supply worries.
Members of the Organisation of the Petroleum Exporting Countries and their allies including Russia, known as OPEC+, will probably stick to a plan for accelerated oil output increases in August when they meet on Thursday, June 30.
The producer group also trimmed its projected 2022 oil market surplus to 1 million barrels per day, down from 1.4 million barrels per day previously.