Oil..

 

European Union is preparing to implement an oil import embargo on Russian energy. Japan is the one G7 member that has been granted an exemption from the sanction. 

The actual idea of the G7 price cap was to get India and China on board with the idea because they are the two countries importing most of Russia’s oil that the West has shunned since February this year. Neither, however, has been sold on the idea, and they will likely continue to buy crude directly from Russia, organizing the insurance and shipping between themselves to avoid breaching the cap scheme.

While the price cap may turn out to be a smaller challenge to global oil supply than expected, it would certainly contribute to oil market uncertainties. 

These uncertainties are so significant that they are betting that oil could reach $200 per barrel. Just a thought.