Oil seen rising past US$200 a barrel on Russian crude price cap

Oil seen rising past US$200 a barrel on Russian crude price cap Citing Bjarne Schieldrop, the chief commodities analyst at Swedish bank SEB Group, on Wednesday (June 29), energy portal Oilprice.com said that the G7’s price capping proposal is a “recipe for disaster” given the current stress that the oil market is under.

Oilprice.com said that according to Schieldrop, the plan seems “neat on paper, but it sounds like a recipe for disaster right now”, given the strong demand for crude oil and low supplies that have so far given Russia the upper hand in the market.

Russia could choose not to sell the oil at a capped price — a decision that could lead to Russia’s production falling by as much as two million barrels per day.

Reuters said oil prices edged higher on Thursday after dipping in early Asian trade as concerns about global supply tightness outweighed a build in US gasoline and distillate inventories.