The Quad talks – involving Australia, India, Japan and the US – will take place in Sydney and the US is planning to leverage on that to seek cooperation from the countries involved on a price cap on Russian oil.

US energy secretary, Jennifer Granholm, says that:

„We want to put on the table the option of joining a buyers‘ group that will heave greater market power to be able to lower the price, and therefore lower the price of Russian oil and lower the profits to Putin.“

In case you missed it, there were discussions by the US and its allies before this on capping Russian oil at around $40 to $60.

Well, the only thing I can say is that good luck getting India on board. Japan is also somewhat heavily reliant on Russian energy imports but they may be more easily swayed. As for India (and China), I just don’t see it happening.

This article was written by Justin Low at www.forexlive.com.