What Happened to the G7 Price Cap on Russian Oil?

[sethoflagos]

Back in December last year to much western media trumpeting the G7 nations imposed a price cap of $60/bbl on Russian crude oil exports to be policed by the once all-powerful shipping insurers Lloyds of London (see here).

Today I notice on https://tradingeconomics.com/commodity/urals-oil that Urals Crude - Russia's flagship product - is quietly trading at $73.26/bbl yet we hear not a whisper of indignation or explanation from the powers that be (ie Rupert Murdoch).

Why suddenly so shy about such a bold inspirational policy.

 

 

[swansont]

The cap only applies to G7 countries. If some other nation transports the oil, there is no effect. It seems likely that non-G7 ships have taken up the transport of oil.

Edit:

https://www.hellenicshippingnews.com/sanctions-on-russian-crude-and-diesel-exports-are-failing/

“Mainstream European tanker owners have largely abandoned the Russian trade now that the country’s crude and diesel have breached Western price caps. The so-called “shadow” fleet — tankers operating outside Western insurance and financial circles — has taken over”

 

[sethoflagos]

And yet the policy seemed to be 'working' with Urals holding steady at around $57/bbl for the first six months of the year. Granted, Japan seemed to have forgotten they agreed to the measure almost as soon as they left the meeting.