White House Wants To Dictate Price Cap on Russian Oil as Energy Crunch Ravages US, Allies

(Photo : BRENDAN SMIALOWSKI/AFP via Getty Images)
The White House seriously thinks it can impose an oil price cap on Russia and lessen an energy crunch impacting the Biden administration's ability to weather a crisis or bring it about. US President Joe Biden (L) and Russian President Vladimir Putin (R) laugh as they pose for press ahead of the US-Russia summit at the Villa La Grange, in Geneva on June 16, 2021.

The White House wants Russia to accept an oil price cap strangling western economies like the US and its European allies buckling from an energy crunch after issuing dangerous sanctions.

Biden administration officials are allegedly holding a meeting to find a way to pressure Moscow to accept their demands, but many see it as impotent and useless gestures.

While the western alliance is suffering from 100 dollars a barrel of oil, China, India, and friendly countries are getting a reasonable discount which Washington wants but is not likely to get.

Washington Seeks Relief for Promised Cheap Oil

Whether the American government can convince Vladimir Putin to accept oil per barrel at $40 to $60 is left to be seen, remarked Bloomberg last Wednesday.

The outlet cited that it was suggested by President Joe Biden last month at the G7 summit by sources privy to the matter, reported RT.

From the onset regarding the rather desperate proposal that many experts have a doubt, it will be heard because Moscow warned the US and its allies to dare try it. If they do, then prices will go up, informed the Kremlin.

One official in the Biden administration is trying to convince via the outlet Bloomberg that the US has the clout to do what it says.

US Resorts to Threats To Cap Oil Price

Suppose the White House does not get what it wants an oil price cap. In that case, it will sanction shipping firms transporting Russian oil with higher expense, causing an energy crunch and even impacting banks and financial institutions, enabling sales.

These secondary sanctions will be used the first time, adding to present sanctions, using Ukraine as a reason, noted The Fast Newz.

Energy experts think the US administration is grasping at straws, citing its plans that would be nothing more than words.

Independent oil analyst Neil Atkinson who spoke to CNBC last week, explained why the White House is doomed to fail. Lack of support from key oil producers and main consumers are not on Biden's side, instead, they prefer Moscow, citing ENews.

Amrita Sen of Energy Aspects told CNBC about how half-baked the idea is, and India and China dismiss the US and its leader; Washington thinks it can decide if Beijing and New Delhi are not in on the plan.

The expert added that the White House is not realistic, also Russia will not sit back and do nothing. It's all words for the US leadership, but it has no power to implement it.

An attempt by Tokyo to suggest a price cap early in the week only got put down hard. Former Russian president Dmitry Medvedev would not have any of it; he posted on social media that if Japan would insist, then it's $300 a barrel.

Joe Biden and G7 heads say the price cap will deny Russia funding to continue its special operation in Ukraine; the US proxy is losing badly even with US weapons. Shocking is the price cap not to lessen pain at the pump.

Citigroup last Tuesday said prices could go lower than $100 a barrel, even $45 by 2023, but the Brent global benchmark contradicted it at $104 a barrel, and US West Texas Intermediate (WTI) trading sold over $100.

The White House does not have the support to force Russia to an oil price cap, and the energy crunch will ripple in western economies as their sanction bounce back at them.