Russian Oil Continues to Trade Well Above G-7 Price Cap

Despite ongoing sanctions, Russian oil prices remain significantly higher than the imposed limits, challenging enforcement efforts.

Russian oil is consistently trading above the $60 per barrel price cap set by the G-7, with prices reaching up to $88 per barrel in markets like India.
The high trading prices suggest widespread non-compliance with the price cap, designed to cut off funding for Russia's war efforts in Ukraine.
Western companies are required to provide attestation that Russian oil cargoes are priced at or below the cap, but current market prices are casting doubt on the credibility of these attestations.
Sanctions have increased shipping costs, but these have not been sufficient to bring prices down to the capped level, indicating partial effectiveness.
The U.S. Treasury is monitoring the situation and may impose sanctions on vessels operating in Russia's shadow fleet to enforce the price cap.