Price cap on Russian oil worked better than expected: BP economist

The price cap on Russian oil has worked far better than anyone had expected and there was a delight in capitals from Washington to Brussels that Russian oil flows have increased to India while keeping Moscow’s revenue in check, BP chief economist Spencer Dale said on Tuesday.

Since the outbreak of the Ukraine war, Russian oil has been selling at a deep discount to international benchmarks, making it a favourite feed for Indian refiners, which barely imported from Russia in previous years. After the G7 countries imposed a price cap of $60 per barrel on Russian oil in December 2022, the imports have further accelerated.