G7 and eu have taken a joint effort to impose a price cap on russian crude oil in order to stop it from being shipped using tankers, insurance companies, and credit institutions based within the g7. this has caused oil prices to rise in response to concerns that global supplies could be disrupted in the coming months. monday saw the price of brent crude oil rise to $87.25 a barrel, although still below the highs observed after the russian invasion of ukraine in 2014.
Easing of covid restrictions in some chinese cities, including urumqi in the northwest, has also lent support to the oil market. this has allowed more people to move around, leading to an increase in demand for oil. in addition, major oil-producing countries have chosen to keep cutting production to maintain price levels. opec+ is comprised of 23 oil-exporting countries, including russia, who have committed to continuing their policy of reducing output in order to support global prices.
Eu embargo on imports of russian crude oil by sea, as well as similar pledges by the us, canada, japan and the uk, has resulted in russia selling its oil to other markets such as india and china. ukraine president volodymyr zelensky has called the $60 cap on russian oil exports “a weak position” that was not “serious” enough to damage the russian economy. kremlin spokesman dmitry peskov said russia would respond to the measures, but it would not stop its military campaign in ukraine. the rise of oil prices could lead to a hike in petrol prices and the cost of living, with the uk already experiencing the sharpest increase in the last 41 years.