FX.co ★ Oil price threshold bolsters Russian ruble

The US authorities tried to explain the rise in the Russian ruble, but all the reasons turned out to be confusing.

The White House administration unexpectedly blamed the introduced oil price cap for the ruble’s appreciation. Analysts at the Wall Street Journal (WSJ) conducted an investigation.

According to White House officials, the Russian ruble gained value after oil price limits failed to have the desired effect. The fact is that Russian budget revenues from oil and gas exports skyrocketed. In October, the indicator doubled compared to September 2023.

Experts at JPMorgan Chase suppose that the effectiveness of the measure waned as Russia managed to improve its trading situation. What is more, the Russian authorities succeeded in stabilizing the national currency against the US dollar. At present, the West has nothing to do as sanctions in the commodity market did not bear fruit and there are no fresh ideas of how to affect Russia.

Notably, the Wall Street Journal reported that the United States continues to impose new restrictive measures against the Russian Federation in response to its non-compliance with the oil price ceiling. At present, the US is considering the opportunity to increase the cost of servicing vessels used by Moscow. In particular, several ports were offered a list of recommendations, which may significantly increase Russia's expenses.