The US continues to lead a chart to place a price cap on Russian oil. The Russians are clearly worried because they've moved to supply long-term price contracts with some countries at substantial discounts.
This kind of mechanism has never been tried before so it's tough to model out. Any drop in Russian oil supplied to the market is bearish for oil but the thinking at the moment is that they'll trans ship it and find a way to get it to market. However it could lead to some local price dislocations.
Crude attempted a rebound today and nearly got back to unchanged but it's slumped again in the past two hours to settle down $2.09 to $89.55 and it's continued to slide after settlement. The August low was $85.87 and that's they key level to watch.
