"Europe’s ban on Russian oil, combined with the U.S.-generated “cap” on Russian oil prices, marks the end of the global oil market. In its place is a partitioned market whose borders are shaped by not only economics and logistics but also geopolitical strategy. Western governments have created this new market in an effort to stifle the oil revenue fueling Vladimir Putin’s war machine. Moscow will counterattack, hoping to cause disruption, panic and a break in support for Ukraine. But Russia will have a tougher time than expected given current market conditions.

.... In the months following Mr. Putin’s invasion, the European Union and the U.K. announced they would prohibit the import of Russian crude oil effective Dec. 5. They also agreed to ban insurance and shipping “services” by their companies for Russian crude-oil shipments anywhere in the world. This meant that Moscow would be cut off from what had been its largest market—nearly four million barrels a day—and that much of the world’s tanker fleet would no longer be able to carry Russian barrels.
....

Mr. Putin, who has denounced the price cap as “stupid” and “robbery,” has made clear that he can’t stand Western countries’ setting the price of his oil. The Kremlin has assembled a “shadow” armada of 100 or more secondhand tankers that will attempt to evade the ban on Western tankers. Chinese and Indian companies can provide some of the missing maritime insurance, but that will still leave a significant gap."

https://www.wsj.com/articles/putin-cant-count-on-the-global-oil-market-price-cap-revenue-production-cut-friedman-biden-eu-russia-energy-11672065849

Looks like Daniel Yergin's main point is the withdraw insurance and shipping services. China and India can certainly provide insurance. Shipping service is a greater threat. The question is whether ship owners can rent their tankers to other nations such as China and India? Or ship owners have to idle their incoming producing assets?

On Wednesday, December 28, 2022 at 2:14:25 AM UTC+8, ltlee1 wrote:
> "Europe’s ban on Russian oil, combined with the U.S.-generated “cap” on Russian oil prices, marks the end of the global oil market. In its place is a partitioned market whose borders are shaped by not only economics and logistics but also geopolitical strategy. Western governments have created this new market in an effort to stifle the oil revenue fueling Vladimir Putin’s war machine. Moscow will counterattack, hoping to cause disruption, panic and a break in support for Ukraine. But Russia will have a tougher time than expected given current market conditions.
>
> ... In the months following Mr. Putin’s invasion, the European Union and the U.K. announced they would prohibit the import of Russian crude oil effective Dec. 5. They also agreed to ban insurance and shipping “services” by their companies for Russian crude-oil shipments anywhere in the world. This meant that Moscow would be cut off from what had been its largest market—nearly four million barrels a day—and that much of the world’s tanker fleet would no longer be able to carry Russian barrels.
> ...
>
> Mr. Putin, who has denounced the price cap as “stupid” and “robbery,” has made clear that he can’t stand Western countries’ setting the price of his oil. The Kremlin has assembled a “shadow” armada of 100 or more secondhand tankers that will attempt to evade the ban on Western tankers. Chinese and Indian companies can provide some of the missing maritime insurance, but that will still leave a significant gap."
>
> https://www.wsj.com/articles/putin-cant-count-on-the-global-oil-market-price-cap-revenue-production-cut-friedman-biden-eu-russia-energy-11672065849
> Looks like Daniel Yergin's main point is the withdraw insurance and shipping services. China and India can certainly provide insurance. Shipping service is a greater threat. The question is whether ship owners can rent their tankers to other nations such as China and India? Or ship owners have to idle their incoming producing assets?

Putin has just signed decree not to sell their oil at $60 per barrel that was fixed by G7 countries. Thank to Putin for his swift action in bringing to them.