Oil has been on a nice run today, rising $2.44 to $80.62 despite yesterday’s report that OPEC+ won’t cut. Eyes are on Russia and the oil price cap after Poland and the Baltic states dug in yesterday on the price cap.
Meanwhile, Fox’s Edward Lawrence cites a source familiar and says the cap will be between $60-63 with an announcement coming next week and a few things still to be finalized in the G7.
Russia is already selling oil cheaper than that but where it could get interesting is if oil spikes about $100 and Russian Urals oil comes above the cap. That would take out incremental supply as prices are rising.
There’s also the question of Russia cutting off exports, which it has said it will do to any country that participates in the scheme.
Technically, oil needs to get above $82 to keep the momentum going. More positive news on China reopening would do it.