A Price Cap on Russian Oil Is Unworkable (Energy Intelligence, July 15, 2022)

The idea of imposing a cap on Russian crude oil prices is the latest example of an unworkable government initiative that seems destined to backfire. The proposal from officials in the US Biden administration, who seem ignorant of the structure of the oil market, will likely be easily circumvented. It will thus do little to damage Russian oil revenues — which might actually be inadvertently boosted — but could double or triple the profits of some oil trading firms, if history is any guide. Other approaches are needed instead, not least an acceleration of efforts to cut oil and gas use. Click here to read more.