Putin attempts to undermine oil price cap as global energy markets fracture

Russia’s announcement of an oil export ban on countries that abide by a G-7 price cap is the latest sign that we’ve entered a new era for global energy markets, according to analysts.

But they also note it’s unlikely to have a short-term impact on oil prices, with markets taking their cues from data and concrete actions rather than words.

The price cap was introduced on Dec. 5 and requires traders using Western services such as maritime routes, insurance and financing to pay no more than $60 per barrel for Russian oil. Urals crude is currently trading around $50 per barrel, according to Finnish refining firm Neste.

Russia on Wednesday said that from Feb. 1 it would stop crude oil and oil products for five months to any nation that adhered to the cap, with a separate ban on refined oil products to come.