G7 is considering a full ban on handling Russian crude – report

Bloomberg reports that the G7 is considering hardening the price cap on Russian oil and is even considering replacing the mechanism with a full ban on handling Russian crude.

The market may get excited about this but I don’t think it’s a real threat.

“Options under consideration range from essentially replacing the
mechanism with a full ban on handling Russian crude to lowering the
price threshold from the current $60 to about $40, the people said. The
people, who spoke on condition of anonymity to discuss sensitive talks,
cautioned that discussions were ongoing and there’s no consensus yet on a
next step.”

So far the price cap has been a near-total failure with Russian oil flowing freely.

This article was written by Adam Button at www.forexlive.com.