Is China considering the proposed price cap on oil?
The United States proposed to China the idea of capping the price of Russian oil during a virtual meeting last week, US Treasury Secretary Janet Yellen told the Wall Street Journal in an interview published Wednesday.
This week, Secretary Yellen is touring Asia, with stops in Japan, South Korea and Indonesia, trying to win US support for the idea of limiting the prices of Russian crude for export.
Yellen first discussed the idea of a Russian oil price cap with China during an online meeting with Chinese Vice Premier Liu He last week, the secretary told the WSJ.
"They listened and were ready to discuss further with us," Secretary Yellen told the Journal. This turns out to be a curious, and unexpected opening to a proposal which, up to now, did not seem profitable for Beijing which, among other things, has excellent relations with Moscow.
China, the largest crude oil importer in the world, is also a major importer of Russian oil.
Last week, tanker tracking data showed that China likely imported another 2 million barrels per day (bpd) of discounted Russian crude in June, after bringing in about the same record amount in May. For the second consecutive month, Russia remained China's top oil supplier, ahead of Saudi Arabia.
After the summit held in Germany last month, the leaders of the G7, the group of the world's leading industrial countries, called on all importing countries to consider a ceiling on the price of Russian oil. However, the proposal seemed rather suspended in the air without the support of China and India, which are standing
Countries are still evaluating the possibility of imposing a ceiling on the price of Russian oil, but they face a difficult balance between trying to limit the Kremlin's oil revenues, the most significant contribution to Vladimir Putin's coffer, and that of do not push international crude oil prices up any further.
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The article Is China considering the proposed price cap on oil? comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/la-cina-sta-valutando-la-proposta-di-price-cap-sul-petrolio/ on Thu, 14 Jul 2022 07:00:22 +0000.