The Group of Seven’s (G7) plan to install a price cap on Russian crude oil is not a “panacea” for international energy markets and may worsen conditions, experts say.
G7 finance ministers recently agreed to institute a price cap on Russian oil in an effort to cripple the country’s revenues that help pay for its war in Ukraine. Leaders from the United States, Canada, France, Germany, the United Kingdom, Italy, and Japan believe this will achieve two objectives: negatively affect Russia and keep crude flows intact to prevent massive price surges.
Officials were short on details, such as the per-barrel price cap, which they noted would be determined “on a range of technical inputs” at a later date….