60% of Russian seaborne crude is now shipped by tankers outside the G7 price cap’s jurisdiction, further complicating enforcement, according to Platts.

• Urals has been consistently trading above $60/b since mid-July; as 40% of supply goes through western providers, enforcement is likely weak among these providers too.
• "There must be a large-scale violation of the oil price cap," Isaac Levi, an analyst at the think tank Centre for Research on Energy and Clean Air told Platts. "There is a low perceived risk of being found guilty of violating measures ... The enforcement agencies perhaps do not have the capacity."
• Treasury Secretary Janet Yellen said that the US would likely take steps to enforce the $60/b cap. However, the US is worried about excessive penalties exacerbating inflation and further restricting global supply.

Source: S&P Global Commodity Insights