Traders have been paying close attention to the international benchmark in the wake of the new sanctions announced on two major Russian oil companies this week.
President Donald Trump has increased tariffs as India continues to buy cheap Russian oil.
The cost to ship fuel has more than doubled since February.
Small independent processors in China are being joined by larger Chinese refiners, driving prices higher.
Whether they $60 a barrel price cap will continue to work in the long run is an open question though.
The $60 price cap was designed to limit Russian oil revenues, while keeping the oil itself flowing to avoid a global price shock.
An EU diplomat is considering a $65 to $70 per barrel price cap on oil from Russia. But some nations want a more punitive target.
A reported $1.5 trillion is tied up as collateral on energy markets. That’s making it hard for energy companies to operate.
Russia remains economically isolated and it’s suffering a brain drain of young, educated professionals, explains Kristy Ironside of McGill University.
European leaders worry about the risk of a supply shortage in the winter, though member nations have different levels of energy security.
