• 4 minutes Energy Armageddon
  • 6 minutes How Far Have We Really Gotten With Alternative Energy
  • 10 minutes Russia Says Europe Will Struggle To Replace Its Oil Products
  • 2 days GREEN NEW DEAL = BLIZZARD OF LIES
  • 2 days "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 3 days "It's a wrap" by Irina Slav
  • 4 days "Europe’s Energy Crisis Has Ended Its Era Of Abundance" by Irina Slav
  • 4 days "Biden Is Running U.S. Energy Security Into The Ground" by Irina Slav
  • 4 days "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 1 day Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 6 days "The Global Digital ID Prison" by James Corbett of CorbettReport.com
  • 8 days Central Bank Digital Currencies and the Global Monetary Reset (part of “The Great Reset”)
  • 9 days "CBDCs: Beyond the Basics" at The Corbett Report
  • 11 days "Dodgy Demand Data? The Oil Price Collapse Conspiracy" by Alex Kimani
  • 13 days Wind droughts
  • 8 days Сryptocurrency predictions
  • 9 days The Federal Reserve and Money...Aspects which are not widely known

U.S. To Offer Oil Product Cargos Grace Period For Price Cap

The United States Treasury Department will grant oil product cargo from a grace period when it goes into effect next year, Reuters said on Thursday.

The price cap on Russian crude oil shipments went into effect on December 5, but the price cap on Russian petroleum products such as gasoline and diesel won’t go into effect until February 5. But now, the United States said there would be a grace period for those shipments in order to provide time for them to arrive at their destination before running afoul of sanctions.

ADVERTISEMENT

For Russian oil product shipments, as long as they are loaded before February 5 and unloaded at its declared destination port before April 1, they will not be subject to the price cap.

ADVERTISEMENT

Russia, of course, has stated its refusal to follow along with the price cap—with Vladimir Putin even threatening to cut crude oil production if it had to.

The oil price cap was designed to restrict Russia’s crude oil revenues while maintaining the flow to international markets. But the price cap has received a lot of criticism despite its well-supported goals, with detractors claiming that such a cap would be ineffective—particularly if Russia makes good on its threat to refuse to ship crude oil or products to any country that attempts to force the price cap.

The problems with the price cap go beyond Russia’s threats. For the first two weeks of the crude oil price cap, crude oil tankers traveling through the Bosphorus and Dardanelles Straits were held up when Turkey demanded proof of full insurance for the cargo.

By Julianne Geiger for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

ADVERTISEMENT


ADVERTISEMENT


Leave a comment
  • Francisco Napoleao on December 25 2022 said:
    The US does not offer anything. They are playing with fire, the grace period is just a way to increase demand and create more chaos.
    The risk is clear, the western insurance will lose customers. That means that their ability to globally secure as they get less income may make them defaut.

Leave a comment


EXXON Mobil -0.35
Open 57.81 Trading Vol. 6.96M Previous Vol. 241.7B
BUY 57.15
Sell 57.00