WH closely monitoring oil tanker backlog in Turkey caused by price cap
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White House official says the US is monitoring oil tankers backlogged in Turkey following price cap on Russian oil
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The crude oil tanker RN Polaris and a bulk carrier sail in Nakhodka Bay near the port city of Nakhodka, Russia, December 4, 2022. (REUTERS)
White House National Economic Council Director Brian Deese said that the US is "closely monitoring" the jam of oil tankers in Turkish waters after the West imposed a price cap on Russian oil that came into effect on Monday
"We're closely monitoring the situation but I think it's too early to make any judgments," Deese said following a question about the effect of the tanker's backlog on global oil supply.
Read more: Germany urges partners to comply with price cap on Russian oil
The director added that it is not expected that the newly introduced price cap would impact the global oil market.
The EU, G7, and Australia have set a price cap on Russian oil, which went into effect on Monday, alongside an EU embargo on maritime deliveries of Russian crude oil.
The Financial Times reported on Monday citing ship brokers, oil traders, and satellite tracking services, that around 19 crude oil tankers were waiting to cross Turkish waters on Monday, dropping anchors near the Bosphorus and Dardanelles, the two straits linking Russia’s Black Sea ports to international markets.
Read more: Buying Russian oil above price cap to result in sanctions: US Treasury
Under EU the price cap decision on Russian oil that took off on Monday, tankers loading Russian crude oil are barred from accessing Western maritime insurance unless the oil is sold under the G7’s price cap of $60 a barrel.
Kremlin spokesperson Dmitry Peskov said Saturday that the price cap that was imposed on Russian oil abroad is unacceptable for Russia, but Moscow will be analyzing it and deciding how to operate under the new circumstances.
Russia's Permanent Representative to International Organizations in Vienna, Mikhail Ulyanov, commented on the decision stating that the European Union will have to live without Russian oil starting this year as a repercussion of the price cap imposed on the country's oil.
Read more: Zelensky says price cap level on Russian oil 'not serious'
Western nations have been trying to find ways to reduce Russia's income from oil and gas exports since the start of the war in Ukraine.
Russia had pledged to stop exporting its oil to countries that would apply price caps on its oil.
Meanwhile, those who violate the price cap on Russian oil exports will suffer consequences under the domestic law of the jurisdictions enforcing the quota, according to US Deputy Treasury Secretary Wally Adeyemo.
