Yellen says setting price caps on Russian refined oil products 'complicated'

Yellen says setting price caps on Russian refined oil products ‘complicated’

DAKAR, Jan 21 (Reuters) – Western international locations are working to construction price caps on Russian refined petroleum products to make sure continued stream of Russian diesel, however the markets are sophisticated and there’s a likelihood issues don’t go to plan, Treasury Secretary Janet Yellen stated.

Group of Seven international locations and Australia applied a price cap on Russian oil Dec. 5, banning using Western-supplied maritime insurance coverage, finance and different companies for cargoes priced above $60 per barrel.

They at the moment are finalizing two separate price caps on Russian refined petroleum products, resembling diesel and gasoline oil, which might be on account of take impact on Feb. 5 together with a European Union ban on diesel imports, Yellen informed reporters in Dakar, Senegal.

One will cowl high-value products sometimes offered at a premium to crude, whereas one other will apply to low-value products like gasoline oil, she stated informed reporters touring along with her in Africa.

Yellen stated setting the brand new price caps had confirmed “extra sophisticated” than for crude, given the vary of various refined products and price buildings, and the significance of making certain continued provides of Russian diesel to the market.

“It’s extra sophisticated, however we have been working exhausting to determine find out how to obtain the identical goals,” as with the broader cap on Russian crude, she stated.

“You know, there’s at all times the potential that issues could not go in keeping with plan however we have studied these markets very rigorously and we consider that we will come out with a set of caps that may obtain the identical issues that we have achieved with crude to this point,” she stated, including that changes might nonetheless be revamped time.

While the primary oil price cap solely took impact on Dec. 5, it had confirmed profitable to date, Yellen stated, citing a drop within the price that Russia was getting for crude oil.

“They’ve expressed concern about revenues, and we have seen no signal that Russia is withholding oil from the market,” she stated.

Reporting by Andrea Shalal
Editing by Nick Zieminski

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