Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
Al-Arida to Al Mayadeen: We were deprived of all means of communication, and we were isolated from the other detainees so as not to receive any piece of information
Freed prisoner and leader of Operation Freedom Tunnel, Mahmoud al-Arida, to Al Mayadeen: Were it not for the pro-Resistance media, the situation of the isolated detainees would have been catastrophic
Iranian Foreign Ministry: The sanctions reinstated by the E3 are non-binding, and we deem them illegal
Iranian Foreign Ministry: Iran, Russia, and China will send a letter to the United Nations and the Security Council tomorrow confirming the expiration of Resolution 2231 and the end of sanctions
Local Afghan sources: Pakistani airstrikes hit the Arghun district of Paktika province, southeastern Afghanistan, after the ceasefire expired
Hamad to Al Mayadeen: We will return the bodies and abide by the agreement we approved, but what is happening now is an attempt by "Israel" to exert more pressure
Hamad to Al Mayadeen: The issue of the [Israeli] bodies is complex and requires time, especially since the occupation changed the features of Gaza, which we explained to the mediators
Hamad to Al Mayadeen: The occupation has been unable to achieve its objectives in the Gaza Strip, so we are not surprised that it is employing the barbaric way
Hamas Political Bureau member Ghazi Hamad to Al Mayadeen: "Israel" threatens with force, which is not a strange thing for it. For our part, we are committed to the agreement that "Israel" violates daily
Al Mayadeen's correspondent: Israeli drone strikes vehicle in Khirbet Selem, one martyr reported.

Experts: price cap on Russian oil to further aggravate energy crisis

  • By Al Mayadeen English
  • Source: Agencies
  • 3 Sep 2022 22:20
  • 1 Shares
4 Min Read

Analysts say that the recent agreement to impose a price cap on Russian oil by the G7 is likely to backfire on western investors as they expect to have the same counterproductive impact as previous sanctions on Russia.

  • x
  • G7 price cap on Russian oil to further aggravate energy crisis
    The G7 meeting in Berlin on 2 September 2022

Observers analyzed that the price cap on Russian oil agreed upon by the G7 will likely cause more damage to Western investors after energy costs surge further.

G7 finance ministers met in Berlin to discuss imposing a price cap on Russian oil. The price caps for oil will come into effect on December 5, and for petroleum products on February 5, 2023

In response to the special operation in Ukraine, Western countries have rolled out a comprehensive sanctions campaign aimed, in particular, at Russian energy resources. That sent food and energy prices soaring, triggering record-high inflation in some countries.

Read more: G7 finance ministers set ceiling for Russian oil, gas prices

Martin Hutchinson, a former merchant banker, business analyst, and economic historian said that the G7 oil price cap will likely cause the same damage as previous sanctions on Russia and will further worsen the energy crisis.

"So far sanctions on Russia have been hell for innocent Western investors, whose Russian assets have been frozen, but have had zero effect on Russia," Hutchinson said.

He also said that resulting price rises from the oil cap will end up compensating for volume declines, and that the G7 states have no control over the policies of heavy oil consumers like China and India, nor the major energy producers of the Middle East.

"The oil will flow to China and India, and Middle East oil at a higher price will flow to Europe and the US," he said. "It's fatuous."

The #G7 is still looking to put a price cap on #Russian oil despite the latter's several highlights that it will not comply and will continue to export to countries without a price ceiling.#Russia#Europe#US#Canadahttps://t.co/5LdMM1eps2

— Al Mayadeen English (@MayadeenEnglish) September 2, 2022

Related News

India denies Trump’s claim that Modi agreed to halt Russian oil buys

Japan, India face US pressure to cut Russian energy ties

Hutchinson's use of the word "counterproductive" implied that Western efforts to economically penalize Russia have profited its foreign earnings instead by driving global oil prices far higher.

Marshall Auerback of the Levy Economics Institute of Bard College said that the G7's approach has marked an acute step back in global developments.

"A classic case of closing the barn door after the horse has bolted," Auerback told sources. "Owing to slowing economic growth and a downshift in oil’s intensity of use since around 2016, the secular trend in oil demand globally and in the US is far weaker than the International Energy Agency (IEA) and the US Energy Information Agency (EIA) and hence the market thinks."

Independent Institute Center for Peace & Liberty Director Ivan Eland, recalling how previous government attempts to artificially influence global markets failed disastrously, said "price controls never work."

Russia's oil export volumes have decreased since the commencement of the Ukraine war, although income increased by $700 million in June compared to May, according to the International Energy Agency in August, due to higher global oil prices.

The price ceiling, which Western leaders agreed on in principle in June, would limit the number of money refiners and merchants could pay for Russian oil. The measure is intended to reduce the Kremlin's earnings while keeping Russian oil on the market in order to avert a price upsurge.

Moscow has previously stated that it will not comply, instead exporting its crude to nations that are not subject to the quota.

Several unidentified G7 officials told Reuters that they doubted the ban would be successful if just the group's members - the United States, United Kingdom, Canada, France, Germany, Italy, and Japan - enforced it. They noted that in order for the measure to have a tangible impact on Russia's oil profits, the G7 would need the support of large oil consumers like China and India.

According to Reuters, such a situation is improbable. Furthermore, while about 95% of the world's tanker fleet now relies on London-brokered shipping insurance, the paper noted, citing unidentified analysts, that alternatives may be found.

Read more: China accuses G7 of 'creating division' by criticizing trade

  • G7
  • gas price cap
  • Russian oil
  • russian oil b
  • russian oil ban

Most Read

Iran strikes secret Israeli-US bunker under Tel Aviv high-rise

Tel Aviv high-rise struck by Iran hid Site 81, secret US-Israeli base

  • Politics
  • 14 Oct 2025
Palestinian journalist Saleh al-Jaafarawi in an undated image in Gaza, occupied Palestine (Social media)

Gaza Palestinian journalist Saleh al-Jafarawi killed by collaborators

  • Politics
  • 12 Oct 2025
drop site

New report details extensive Israeli arson in Gaza after ceasefire

  • Politics
  • 13 Oct 2025
Illustration of fists breaking shackles, representing the liberation of Palestinian detainees from Israeli prisons. (Illustrated by: AL Mayadeen English/Batoul Chamas)

4 prominent Palestinian detainees to be freed: Who are they?

  • Palestine
  • 13 Oct 2025

Coverage

All
War on Gaza

Read Next

All
The bodies of deceased Palestinians, held by Israel during the war, lie in plastic bags on the floor of Nasser Hospital in Khan Younis, Gaza, following their release, Wednesday, Oct. 15, 2025 (AP)
Politics

'Israel' returns 30 Palestinian bodies; some bear marks of torture

Gaza buried under 70 million tons of war debris as crisis deepens
Politics

Gaza buried under 70 million tons of debris, 20,000 lingering UXOs

Ex-White House adviser Ashley Tellis charged over secret files
Politics

Ex-White House advisor accused of amassing troves of top secret files

An Israeli soldier rests by a mobile artillery unit at a gathering point on the border with the Gaza Strip, in southern “Israel”, Saturday, Oct. 11, 2025. (AP)
Politics

Global arms bans isolate 'Israel', yet its war machine keeps running

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • x
  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS