Oil prices rise as cap on Russian crude imposed


Oil prices rise as cap on Russian crude imposed

Oil prices have risen amid concerns that a new cap on the price of Russian crude could disrupt global supplies in the coming months.

A separate decision by major oil-producing countries to keep cutting how much they produce to prop up prices has also fuelled the rise.

The price of Brent crude oil rose by almost 2% on Monday to $87.25 a barrel.

But this is still well below the highs seen after Russia invaded Ukraine.

Higher oil prices tend to push up petrol prices and the cost of living which, in the UK, is rising at its fastest pace in 41 years.

On Monday, the G7 group of major economies implemented a cap on the price of Russian oil at $60 a barrel to “prevent Russia from profiting from its war of aggression against Ukraine”.

It will stop any Russian crude sold for more than that price from being shipped using G7 and EU tankers, insurance companies and credit institutions. Many major global shipping and insurance companies are based within the G7.

However, Russia – which is the world’s second biggest producer of crude oil – has said it will not accept the price cap and threatened to stop exporting oil to countries adopting the measures.