Quote:
Originally Posted by GGG
The only way to create a price cap would be to meet global demand this means withdrawal from the petroleum reserves to be sold at the capped price. This also means needing to withdraw the entirety of the Russian supply.
Europe is supposed to have 90 days supply at all times. The US has 700 million barrels and can pull out 4.4 million per day.
This appears to be just enough to offset the 7 million barrels in Russian exports but couldnt last more than 100-200 days.
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They are just capping the Russian oil from what I read. Other oil is not being capped. So China and India would pay less for oil than the West would. Basically they don't want to cut the oil available overall, just cut the price on Russian oil by using the fact that all payments flow through G7 countries financial systems.