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Letter to Treasury Secretary Janet Yellen: In Support of a Price Cap on Russian Oil Exports

Simon Johnson · 11 Oct 2022

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Every claim below was made in this piece, quoted word for word and numbered in the order the piece makes them, so you can read it there rather than take our word for it. The sentence above each quote is our reading of the claim, not their wording. Each quote was checked against a stored copy of the page at build time; where the two differ, the quote is the fact.

  1. Our reading

    An oil embargo without a price cap would reduce global oil supply and push up benchmark prices like Brent.

    Their wordsIf the EU implements these measures without a price cap, we would expect the supply of oil to the world market to decline - and benchmark oil prices (e.g., Brent) to rise.

  2. Our reading

    A price cap on Russian oil can reduce Russian oil revenue even with limited compliance, by strengthening buyers' bargaining position.

    Their wordsAnd the cap stands a good chance of lowering Russian revenue even if formal participation is limited - by strengthening the negotiating position for anyone willing to buy Russian oil.

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