US Treasury says price cap enforcement is widening discount on Russian oil

Stepped-up enforcement of the G7-led price cap is forcing Russia to sell its oil at a steeper discount, according to a US Treasury analysis published on 23 February. The discount Russia earns relative to other suppliers rose from a low of $12–13 a barrel in October to about $19 over the past month, while Russian export volumes stayed stable, the Treasury says. It credits the cap's first phase with limiting Russia's energy revenue, with oil tax revenue down 40% in the first nine months of the year. Market participants, analysts and what the Treasury calls "Putin's own oil czar" have linked the wider discount to the coalition's enforcement drive, it adds.

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