Technical Analysis

Putin: We will think about oil output cuts

  • Decree responding to price cap will be announced in coming days
  • Decision on oil output cuts is not taken yet
  • We will not sell oil to those who proposed price caps
  • We will think about oil output cuts
  • Nothing would remain of any enemy who decides to attack Russia with nuclear arms

Putin has officially put output cuts on the table. WTI crude oil rose to a session high of $72.85 on these comments.

Russia’s energy minister said they have three options to respond on the price cap and I suspect those three are sitting on Putin’s desk right now. He didn’t say what they were but a separate report says they are:

  1. A complete embargo on supplies to those who supported the price cap, even if they buy Russian oil via third countries
  2. A ban on any exports under contract whose terms include the price cap, regardless of the buyer
  3. A price floor set as a discount to brent

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