The US and EU are about to lead their biggest intervention in global oil markets, with the 5 December start of an EU embargo on Russian seaborne crude imports and the attempted imposition of an oil price cap initially set at $60/bl on Russian crude sales to third-party buyers. The common goals of breaking European dependence on Russian energy and punishing Russia for invading Ukraine demand a harmonisation of approaches between the US and EU. But the latter’s political complexities have come into play as the bloc struggled to agree a price cap on Russian crude exports. Para-doxically, it is the US-relatively insulated against supply shocks-that has pushed for a relaxed oil sanctions regime against Russia, while Poland and other EU eastern bloc members wanted an approach that appears most likely to cut Russian exports-and raise energy prices for consumers globally.
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