Day one of the Russia oil price cap
The West’s price cap on Russian crude is now in effect — and a backlog of tankers is forming off the Turkish coast as Ankara demands to see proof of ins. before allowing vessels through the straits, the Financial Times reported, citing ship brokers, oil traders and satellite tracking services. Nineteen ships are now waiting to transit through the Turkish straits in a potential sign of the disruption to come as the world responds to what the FT editorial board calls “one of the most forceful interventions in the global oil market ever.”
FYI- Under the sanctions, oil tankers are prevented from buying Western maritime ins. if the oil is sold above the USD 60 price cap.
Meanwhile, on the other side of the world: Russia was selling its ESPO blend from the port of Kozmino on the Sea of Japan for USD 79 a barrel, significantly above the USD 60 cap, Reuters reported yesterday.
Breakthrough in Sudan? Sudan’s ruling military leaders have signed an agreement with the country’s main pro-democracy group that lays the foundations for a return to a civilian-led administration following last year’s military coup, according to the Associated Press. Under the framework agreement — signed by General Abdel Fattah Burhan, General Mohammed Hamdan Dagalo and the leaders of the Forces for the Declaration of Freedom and Change — the military vowed to eventually reduce its involvement in politics and allow for the creation of a new transitional government.
Yes, but: The agreement doesn’t commit the military to a timetable or specify how it would share power with civilian leaders ahead of national elections. Other anti-military protest groups and rebel leaders rejected the pact.
Egypt has voiced support for the agreement: The Foreign Ministry called it an “important and pivotal step” for addressing the political crisis in the country.
China to keep easing covid curbs: China is set to relax more of its strict covid-19 measures as early as tomorrow, as investors react positively to the recent easing of some restrictions, two sources familiar with the matter told Reuters. The CNY rose to its highest level against the greenback since mid-September and Chinese stocks rose on investor hopes that easing restrictions will boost global economic growth and increase demand for commodities. Apple was also given a boost yesterday after its main supplier Foxconn said that its covid-hit “iPhone City” in Zhengzhou could be back running at full capacity later this month.
Iran is trying to appease protesters: Iran’s attorney-general has said that the country’s morality police are being disbanded in an apparent olive branch to anti-government protests that have raged since September following the death of a woman in police custody. The religious police are responsible for enforcing the country’s strict Islamic dress code and have been blamed for the death of Mahsa Amini, who was arrested for allegedly failing to cover her head. The official’s statements have not been officially confirmed by the government.