(Original title: Biden’s team shakes US fears that Russian oil price restraint could backfire)
Financial Associated Press, October 13 (editor Xia Junxiong)After OPEC + unexpectedly announced production cuts last week, some Biden administration officials are increasingly concerned that their plans to impose price limits on Russian oil may backfire, according to sources familiar with the matter.
In the Biden administration’s view, capping the price of Russian oil can not only reduce Russia’s revenues, but also prevent Russian oil from withdrawing from the market and driving up oil prices. However, the plan has faced a complicated situation since it was proposed: how to balance the interests of all parties is a major problem that the United States and its allies must urgently resolve.
OPEC + last week announced a 2 million barrels per day (bpd) production cut to stabilize oil prices, the largest production cut since 2020. The move sparked a backlash in the United States, where the President Joe Biden criticized OPEC + ‘s decision to cut production and pointed the finger directly at Saudi Arabia, saying the United States must reassess its relations with the kingdom.
Although the OPEC + production cut has made the prospect of the Russian oil price cap more uncertain, the plan is still ongoing and has broad support within the Biden administration and many allies, people said. they are familiar with the matter.
People familiar with the matter also said that of all current plans to reduce Russian oil revenues, the proposal to cap the price of Russian oil is seen as the best option.
However, some officials worry that the U.S. push for Russia’s oil price ceiling plan may instead lead to higher oil prices as OPEC + production cuts increase volatility in the oil market.
Additionally, US officials are increasingly concerned that Russia may react by cutting off oil supplies. Russian President Vladimir Putin previously warned that Russia would not sell oil to any country participating in the price cap regime.
The US is still actively pushing for the Russian oil price ceiling plan
It is reported that US officials are still actively promoting the price limit plan, and these officials are meeting almost daily to discuss the price limit implementation. The US Treasury Department said in a statement Tuesday that Treasury Secretary Janet Yellen will continue to redouble efforts.
Yellen suggested limiting Russian oil prices to around $ 60 per barrel. Brent is currently above $ 90 a barrel, while the Russian Urals are trading at $ 75 a barrel.
Analysts believe the US and its allies are unlikely to be able to limit Russia’s oil revenues, and not all countries support the plan, even within the Western bloc. Approval by all EU member states remains a major obstacle to Russia’s oil price ceiling plan.
