US, Allies Discussing Trying to Cap Russian Oil at $40-$60 Per Barrel

Bloomberg reported Wednesday that the US and its allies have discussed trying to cap the price of Russian oil around $40-$60 per barrel as the West wants to limit Russia’s profits without sending the price of oil even higher. Oil is currently hovering around $100 per barrel on the global market.

But the US-proposed plan is doomed to fail as it requires Moscow’s cooperation, and experts are warning if Russia retaliates by cutting production, prices could skyrocket. Analysts at JPMorgan Chase said in the worst-case scenario, oil prices could soar to $380 per barrel.

Last week, President Biden attended a G7 summit in Germany, and the G7 leaders released a joint statement that said they were exploring the idea of a price cap on Russian oil. Japan, a G7 nation, has reportedly put forward a proposal to implement the price cap, prompting warnings from Russia.