Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Yellen says setting price caps on Russian refined oil products 'complicated'

Published 22/01/2023, 05:32 am
Updated 22/01/2023, 05:42 am
© Reuters. FILE PHOTO: FILE PHOTO: U.S. Treasury Secretary Janet Yellen arrives to a news conference during the Annual Meetings of the International Monetary Fund and World Bank in Washington, U.S., October 14, 2022. REUTERS/Elizabeth Frantz/File Photo/File Photo

© Reuters. FILE PHOTO: FILE PHOTO: U.S. Treasury Secretary Janet Yellen arrives to a news conference during the Annual Meetings of the International Monetary Fund and World Bank in Washington, U.S., October 14, 2022. REUTERS/Elizabeth Frantz/File Photo/File Photo

By Andrea Shalal

DAKAR (Reuters) - Western countries are working to structure price caps on Russian refined petroleum products to ensure continued flow of Russian diesel, but the markets are complicated and there is a chance things do not go to plan, Treasury Secretary Janet Yellen said.

Group of Seven countries and Australia implemented a price cap on Russian oil Dec. 5, banning the use of Western-supplied maritime insurance, finance and other services for cargoes priced above $60 per barrel.

They are now finalizing two separate price caps on Russian refined petroleum products, such as diesel and fuel oil, that are due to take effect on Feb. 5 along with a European Union ban on diesel imports, Yellen told reporters in Dakar, Senegal.

One will cover high-value products typically sold at a premium to crude, while another will apply to low-value products like fuel oil, she said told reporters traveling with her in Africa.

Yellen said setting the new price caps had proven "more complicated" than for crude, given the range of different refined products and price structures, and the importance of ensuring continued supplies of Russian diesel to the market.

"It's more complicated, but we've been working hard to figure out how to achieve the same objectives," as with the broader cap on Russian crude, she said.

"You know, there's always the potential that things may not go according to plan but we've studied these markets very carefully and we believe that we're going to come out with a set of caps that will achieve the same things that we've achieved with crude so far," she said, adding that adjustments could still be made over time.

© Reuters. U.S. Treasury Secretary Janet Yellen looks on as she visits Goree Island off the coast of Dakar, Senegal January 21, 2023. REUTERS/Ngouda Dione

While the first oil price cap only took effect on Dec. 5, it had proven successful thus far, Yellen said, citing a drop in the price that Russia was getting for crude oil.

"They've expressed concern about revenues, and we've seen no sign that Russia is withholding oil from the market," she said.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.