Negotiations between EU nations on Russian oil price cap got stuck
Diplomats from the European Union failed to reach a consensus on a Russian oil price cap.
According to inside sources, the European Commission proposed $65 per barrel as the maximum price. The Baltic States and Poland were in push of harsher Russia sanctions, considering this level too ‘‘generous.’’ Countries with major shipping industries, such as Greece and others, rejected the price cap below $70. Previously, on Wednesday, the EU set the upper end of the range of $70.
On Thursday, EU ambassadors will meet again for further discussions. EU countries still can’t approve the price per barrel by unanimity. The USA first came up with the idea of setting a price cap, although the countries have not announced their decision yet. The EU Energy Ministers' meeting is also scheduled for 24 November, where they will tackle the issue of how to curb surging natural-gas prices.
Oil prices saw a decline on Wednesday on the Bloomberg agency report about the potential price range. Russian oil is currently selling at a discount, and if the price range is in line with current prices, this will not influence Russia's revenue much.
The issue of inflation is currently of less importance in the foreign exchange market. Thus, according to economists at Commerzbank, dollar bears will not suffer losses even on the release of optimistic nonfarm payrolls.
Yesterday at 12:16 PMObviously there has been a structural shift in the markets toward a bearish dollar position. According to economists at Internationale Nederlanden Groep (ING), current U.S. nonfarm payrolls data may not cause an inversion of this trend.
Yesterday at 12:10 PMEuropean Central Bank President Christine Lagarde stated that inflation expectations should not change. People should be confident that price growth will return to the target level.
Yesterday at 11:56 AMCentral banks have recently been stepping up measures to combat global inflation. Investors, meanwhile, are actively discussing the continuation of high price levels amid limited supply.
Yesterday at 11:30 AMThe focus is on the OPEC+ meeting and the entry into force of bans related to the import of Russian oil.
Yesterday at 12:59 PM