Home Economics Nearly no Russian oil is bought beneath $60 cap, say western officers

Nearly no Russian oil is bought beneath $60 cap, say western officers

Nearly no Russian oil is bought beneath $60 cap, say western officers


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Good morning.

The US-led worth cap on Russia’s oil gross sales is being virtually fully circumvented, in line with western officers and Russian export information.

A senior European authorities official mentioned “virtually none” of the shipments of seaborne crude in October had been executed beneath the $60-a-barrel restrict that the G7 and its allies launched final December.

“The newest information makes the case that we’re going to need to toughen up . . . there’s completely no urge for food for letting Russia simply preserve doing this,” the official mentioned.

The bounce in Russian oil costs has dealt a blow to G7 efforts to restrict the funds flowing to the Kremlin to fund its full-scale invasion of Ukraine, and comes as Kyiv has made solely restricted progress in its counteroffensive.

Considerations within the west are backed up by official Russian statistics on oil gross sales in October displaying the common worth acquired was above $80 a barrel. Learn extra on efforts to strengthen the cap.

Right here’s what else I’m retaining tabs on immediately:

  • Financial information: The US releases the buyer worth index for October, which is anticipated to point out headline inflation fell to three.3 per cent, down from 3.7 per cent in September. Brazil’s statistics company publishes companies exercise information.

  • Congress: Main banking regulators, together with the chair for supervision on the Federal Reserve and the chair of the Federal Deposit Insurance coverage Company, will testify earlier than the US Senate Committee on Banking, Housing, and City Affairs.

  • Outcomes: Residence Depot is predicted to report a drop in quarterly same-store gross sales as residence enchancment demand continues to slip amid excessive inflation.

5 extra high tales

1. China has agreed to crack down on firms exporting chemical substances used to make fentanyl, in a deal that will probably be sealed when Joe Biden and Xi Jinping meet in San Francisco tomorrow. The deal is predicted to be amongst a number of to emerge from the summit as the 2 sides attempt to stabilise US-China relations which have sunk to their worst state in 4 many years.

  • China’s state media: One of many excessive factors in US-China relations has been revived forward of tomorrow’s summit. However analysts warn it won’t change the “east rises, the west falls” narrative.

2. The Federal Deposit Insurance coverage Company yesterday employed legislation agency BakerHostetler to overview allegations of widespread sexual harassment, inappropriate behaviour and discrimination on the US banking regulator. FDIC chair Martin Gruenberg mentioned BakerHostetler would lead an impartial “high to backside” evaluation of the FDIC’s office and the alleged conduct. Learn extra on the “poisonous ambiance” on the regulator.

3. The US Supreme Court docket has adopted its first code of conduct in a landmark transfer that follows reviews earlier this yr that Conservative justices Clarence Thomas and Samuel Alito didn’t disclose items and luxurious journey for years. The court docket mentioned the code was “considerably derived” from tips utilized to different US federal judges. Right here’s extra on the brand new code.

4. Disney-owned broadcaster ESPN is taking intention on the US sports activities betting market, teaming up with on line casino group Penn Leisure to launch an app designed to crack the duopoly of DraftKings and FanDuel. Penn has agreed to pay the sports activities community $150mn a yr to safe a 10-year licensing deal for ESPN Guess, which is launching in 17 states. Learn extra on ESPN’s foray into on-line sports activities betting.

5. ExxonMobil plans to start producing lithium in 2027 in a serious strategic pivot. The oil and gasoline producer mentioned it had begun work to extract lithium from underground brines within the southern US state of Arkansas the place it has acquired the rights to 120,000 acres of land. The corporate is betting it could use its experience in drilling and processing to develop into a number one participant within the battery steel.

The Huge Learn

Over the previous eight years, Barclays has careened from scandal to screw-up, with a former chief government discovered to have misled regulators over his relationship with a convicted intercourse offender and a paperwork blunder that led to a whole bunch of hundreds of thousands of kilos in fines and compensation. Now, chief government CS Venkatakrishnan is pinning his hopes on a strategic overview to repair the British financial institution’s troubles.

We’re additionally studying and listening to . . . 

Chart of the day

Line chart of Cumulative flows into investment funds year-to-date (%) showing Appeal of equity funds dwindles as rates rise

After a decade of positive aspects, the Federal Reserve’s historic sequence of rate of interest rises prior to now yr has reworked the outlook for equities. Pension funds and wealth managers are already investing much less of their funds in shares, as an alternative attracted by the excessive curiosity on supply from cash market funds and bond holdings. However fairness fund managers are brushing up on their historical past to emphasize that there are nonetheless alternatives within the inventory market in a excessive rate of interest world.

Take a break from the information

FT senior enterprise author Andrew Hill selects his must-read enterprise books of 2023 — together with Bethany Allen’s Beijing Guidelines, an eye-opening chronicle of the a number of methods by which China’s Communist celebration seeks to exert its energy overseas.

© An image displaying three books, Quantity Go Up, How Huge Issues Get Finished and Blood within the Machine

Further contributions from Grace Ramos and Benjamin Wilhelm

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