Yellen seeing benefits for buyers of Russian oil with the price capped

Moves from Western allies to cap the price of Russian oil will be a benefit to others says US Treasury Secretary Yellen.

  • Beijing will benefit from the new price cap mechanism to be imposed in December
  • China and other buyers of Russian oil will have more leverage to negotiate lower prices
  • “We see the price cap is something that benefits China benefits India, and benefits all purchasers of Russian oil,”

If Russia’s oil was completely removed from global markets the price of remaining oil would skyrocket. Biden would not be happy with this.

With the price cap to proceed from December 5, Yellen looks to have played and won.

Selected remarks from US Treasury Secretary Yellen's prepared speech to the US Senate banking

IMF on global economy – “the outlook is gloomier”, particularly in Europe.

The International Monetary Fund has written in a piece prepared for the summit of G20 leaders in Indonesia,

recent high-frequency indicators “confirm that the outlook is gloomier,” particularly in Europe
It said recent purchasing manager indices that gauge manufacturing and services activity signaled weakness in most Group of 20 major economies, with economic activity set to contract while inflation remained stubbornly high
IMF citing:


  • tightening monetary policy
  • triggered by persistently high and broad-based inflation
  • weak growth momentum in China
  • ongoing supply disruptions and food insecurity caused by Russia’s invasion of Ukraine

Info via Reuters.

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