Moscow is already facing the heat of a planned Western price cap on its oil and is offering huge discounts to partners while looking for other buyers, says US Treasury Secretary Janet Yellen.

US has been urging China and India to join the coalition of countries seeking to impose a price cap on Russian oil.
US has been urging China and India to join the coalition of countries seeking to impose a price cap on Russian oil. (Reuters Archive)

A planned Western price cap on Russian oil is already making a difference, US Treasury Secretary Janet Yellen has said, noting that Russia was now offering China and India "enormous discounts" while looking for other outlets for its oil.

In December, Europe would halt the bulk of its purchases of three million barrels per day, putting additional pressure on Russia to find new buyers for its oil, Yellen told a conference hosted by The Atlantic magazine on Thursday.

Europe was facing a tough winter with tight energy supplies as it decoupled from Russian energy, Yellen said.

She said that could have some spillover effects on the United States, but she "wouldn't exaggerate" the potential impact on US growth.

Russia, Saudi Arabia 'praise' OPEC+

Russian President Vladimir Putin and Saudi Crown Prince Mohammed bin Salman, meanwhile, spoke on Thursday and praised efforts within the OPEC+ framework, confirming their intention to stick to existing agreements, the Kremlin said.

In a statement, it also said the two men had discussed ways the two countries could cooperate to ensure stability in the global oil market. 

In late July the two nations said they remained committed to the OPEC+ agreement to preserve market stability and balance supply and demand.

Russia pushed ahead with its biggest conscription since World War Two, raising concerns an escalation of the conflict could further hurt supply.

The European Union is considering an oil price cap, tighter curbs on high-tech exports to Russia and more sanctions against individuals, diplomats said, responding to what the West condemned as an escalation in "Moscow's war in Ukraine."

Source: TRTWorld and agencies