US Is Seeking to Cap Global Oil Prices

Washington is in talks with the partners to set a cap on oil prices. This will reduce Russia’s revenues from selling energy resources and help developing countries, U.S. Treasury Secretary Janet Yellen believes. The US and its friendly states are discussing a price cap on oil so as to cut Russia’s income from oil exports and “prevent a negative impact on the world economy”, said US Treasury Secretary Janet Yellen during her visit to Canada on Monday evening, June 20. According to her, it is a price cap or price exception that would produce several results at once – tightening Western sanctions against Russian energy and lowering the price of Russian oil, thereby reducing Russian government’s revenues while increasing the oil volumes on the world market. Positive Effects for Low-Income Countries The U.S. Treasury Secretary believes that capping the oil price would also prevent “spillover effects to low-income and developing countries,” which are currently struggling with high energy and food prices. Janet Yellen raised this topic during the talks with her Canadian counterpart Chrystia Freeland. The talks in Ottawa also focused on such issues as strategy against the backdrop of the war in Ukraine, high inflation and problems with global supply chains. DW