Oil prices climb despite efforts to cap Russian exports

Crude oil prices rose this morning after a whirlwind of events that could drastically alter the supply and pricing of energy this winter.

An E.U. embargo on Russia’s seaborne oil imports went into effect on Monday, following a decision on Sunday by OPEC producers and Russia to keep production quotas unchanged. Those developments, together with an agreement on Friday by Group of 7 nations to impose a $60 price cap on Russian crude and the emergence of more signs that China is easing its Covid restrictions, set off a modest buying spree among energy traders.

By 6 a.m. Eastern, Brent crude, the global benchmark, had topped $87 per barrel, and West Texas Intermediate was above $82 a barrel.

Crude prices have whipsawed since Russia’s invasion of Ukraine in February, rocketing above $100 per barrel in the spring, only to fall over the summer on fears of a global recession. A slowdown in China in particular had capped demand, but prices have remained volatile.

Analysts have been scrutinizing fallout from the oil price cap, a move designed to punish Russia for the war in Ukraine — but also meant to avoid significant distortions in the energy markets that would force consumers and businesses to pay even higher prices for fuel.

Unsurprisingly, Moscow said this weekend that it wouldn’t accept the Western price cap, and that it would cut sales to countries that participate in the arrangement. How much of an effect that will...

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