Economist Podcasts The for-sixty-dollar question: a cap on Russian oil
Dec 5, 2022
Rachana Shanbog, Deputy Business Affairs Editor, and Kinley Salmon, Africa Correspondent, dive into the new $60-per-barrel price cap on Russian oil and its potential to reshape global markets. Rachana highlights the complexities of implementing this cap amidst ongoing sanctions and Russia's strong export earnings. Kinley shifts focus to Senegal's football scene, showcasing the Generacion Fut academy's role in nurturing future stars, even as the nation misses out on the World Cup. Together, they unravel intriguing global economic and cultural currents.
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Russian Oil Price Cap
- The G7 and EU introduced a $60 per barrel price cap on Russian oil to limit Russia's war funds.
- Ukraine's President Zelensky criticized the cap as insufficient, highlighting the challenge of pressuring petrostates.
Western Market Power
- The West uses its market power in insurance and shipping to enforce the price cap on Russian oil.
- This strategy aims to reduce Russia's earnings without significantly disrupting global oil supply.
Russia's Response and Preparation
- Russia may cut oil production in response to the price cap, potentially raising global prices.
- Russia has been preparing for sanctions, including acquiring tankers and seeking alternative insurance.