2022-11-25 08:16:56

The G-7 may cap Russia's oil price but it won't dent Moscow's war chest, analysts say

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CNBC
By Lee Ying Shan

Key Points

  • Prices at those levels are close to what Asian markets are currently paying Russia, which are at a big discount, said Wood Mackenzie's vice president of gas and LNG research, Massimo Di Odoardo.
  • The discussed cap is not expected to make a dent in Russia's oil revenues as the prices that Asian markets are currently paying for Russian crude are already at a big discount, said Wood Mackenzie.

Picture taken on May 3, 2022 shows a general view of Slovakia's largest mineral oil refinery Slovnaft in Bratislava, Slovakia. (Photo by JOE KLAMAR / AFP)

Joe Klamar | Afp | Getty Images

The Group of 7 nations are in talks to cap Russian oil at $65 and $70 a barrel but analysts say it likely won't have a significant impact on Moscow's oil revenues even if it's approved.

Prices at those levels are close to what Asian markets are currently paying Russia, which are at a big discount, said Wood Mackenzie's vice president of gas and LNG research, Massimo Di Odoardo.

Those levels of discounts are certainly in line with what the discounts already are in the market It's something that doesn't seem, as it is placed, like it's going to have any effect [on Moscow] whatsoever if the price is so high.

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