Russia won’t put a price floor on its crude – report | Forexlive

It looks like Putin will mostly take the oil price cap lying down.

A Bloomberg report says no decisions have been final but that Russia is likely to simply prohibit sales through any contract that mentions the price cap.

A price floor was considered last week and so where prohibiting certain countries from buying crude but neither is coming.

The thing is, the contracts don’t have to mention the price cap in the G7 agreement, so buyers can simply set there bids below $60 and that’s that.

Where it will get interesting though is if/when crude prices rally and Russia crude is ‘in the money’ above the floor. That could lead to a cut in supplies as crude is rallying. WTI crude oil was last trading at $76.81 as it shakes off this report and the bearish inventory report.