In theory, the Group of Seven major economies’ oil price cap proposal is an elegant proposition that could kill two birds with one stone: Curb inflation while minimizing Russia’s oil revenues. . But it’s also one of those potentially hurtful things for everyone involved.
The European Union’s ban on Russian crude oil imports by sea starts in December, so the price cap will allow Europe, as well as other major importers such as India and China, to pay less. until the ban goes into effect. These two countries are reaping financial benefits from the current drop in Russian crude oil prices while many Western buyers reject the shipments, bearing the cost.
https://www.wsj.com/articles/russia-oil-price-cap-a-sensible-but-slippery-solution-11656445158?mod=rss_markets_main Russian oil prices limit a sensible but slippery solution