updraftplus domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home/aonyeani76/cryptocurrencypanther/wp-includes/functions.php on line 6131hustle domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home/aonyeani76/cryptocurrencypanther/wp-includes/functions.php on line 6131wpforms-lite domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home/aonyeani76/cryptocurrencypanther/wp-includes/functions.php on line 6131The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced sanctions on Thursday targeting two tanker owners involved in shipping Russian oil that exceeded the established price cap.
In a recent development, oil prices saw a remarkable surge, rising by 4% earlier today, following the United States’ decision to intensify sanctions against Russian crude exports.
According to reports, International benchmark Brent crude futures, set to expire in December, traded 3.9% higher, reaching $89.34 per barrel, while the front-month November US West Texas Intermediate crude futures rose 4.1% to trade at $86.28 per barrel.
The surge in oil prices can be attributed to the US’s recent move to impose sanctions on two shipping companies accused of violating the G7’s oil price cap, a mechanism designed to maintain a steady supply of Russian crude oil while curbing the Kremlin’s financial resources.
To understand the significance of this move, it is crucial to track back to December 5th of the previous year when the Group of Seven (G7), Australia, and the European Union (EU) implemented a $60-per-barrel price cap on Russian oil.
This cap was designed to restrain Russia’s fossil fuel export revenue, which was believed to be contributing to its ongoing conflict in Ukraine. In a coordinated effort, the EU and the UK simultaneously imposed a ban on seaborne imports of Russian crude oil.
In a further escalation of measures, the US Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced sanctions on Thursday targeting two tanker owners involved in shipping Russian oil that exceeded the established price cap.
The YasaGolden Bosphorus tanker, which is owned by Turkey-based Ice Pearl Navigation Corp, was found to have transported Russian crude oil priced above $80 per barrel after the G7-imposed price cap came into effect. The other vessel, SCF Primorye, owned by UAE-based Lumber Marine SA, was noted for carrying Russian oil priced above $75 per barrel from a Russian port after the price cap mechanism was implemented.
These sanctions reflect the United States’ unwavering commitment to reducing Russia’s resources, which are instrumental in its military campaign in Ukraine, while also enforcing the established price cap.
“We remain committed to implementing a price cap policy that has two goals: reducing the oil profits upon which Russia relies to wage its unjust war against Ukraine and keeping global energy markets stable and well-supplied despite turbulence caused by Russia’s unprovoked invasion of Ukraine. We will continue to take actions to achieve these two goals,” said Deputy Secretary of the Treasury Wally Adeyemo.
In addition to these recent sanctions, the Price Cap Coalition has issued an advisory aimed at both governmental and private sector entities involved in the maritime trade of crude oil and refined petroleum products.
This advisory provides recommendations for best practices and highlights their commitment to promoting responsible practices in the industry, preventing and disrupting sanctioned trade, and enhancing compliance with the price cap.
Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
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Both Nvidia and AMD stock might continue to plunge if the US Commerce Department extends its restriction on shipping specific chips to China.
Nvidia Corp (NASDAQ: NVDA) stock fell in after-hours trading following news that the US could seal loopholes currently applied to selling powerful artificial intelligence (AI) chips to China. In reaction to the news, NVDA fell 3.2% in New York after-hours trading.
Currently trading at $406.14 according to data from MarketWatch, NVDA closed at $418.76 after climbing 3.06% on the day. However, the loss has erased gains Nvidia stock took on during regular trading. According to a Bloomberg report, China contributes nearly a fifth of Nvidia’s revenue. The company’s earnings could suffer a big blow if Washington does follow through with blocking these loopholes.
The news also affected Nvidia rival Advanced Micro Devices Inc (AMD) (NASDAQ: AMD), which lost nearly 3%. Both American chipmakers will likely suffer significantly from Washington’s proposed ban.
The United States and China have had a fairly antagonistic relationship for some time. Washington seems bent on stifling China’s tech development as tensions fester between the two giant nations. Following the rise of OpenAI’s ChatGPT, several tech giants worldwide are making heavy strides in AI and sinking billions worth of investments.
For instance, this month, China’s Alibaba Cloud began rolling out Tongyi Qianwen, an AI large-language model (LLM) set to rival ChatGPT. Alibaba intends to integrate the LLM into Tongyi Tingwu, an AI assistant that offers multimedia content analysis. However, outside of individual companies in China, the government is likely throwing its full weight behind AI advancement. The US seems worried that China could advance AI for scientific and military purposes in their favor. Consequently, the Biden administration will likely do all it can to stem AI advancement in China.
Last year, the US introduced license requirements on advanced chips Nvidia ships to China. According to a regulatory filing, Nvidia needs a license to sell specific chips to China and Russia. Although Nvidia does not ship to Russia, the company said the new rule could shrink its quarterly sales by up to $400 million.
In response, Nvidia reconfigured the popular A100 chip, downgrading it to the A800. While the former’s processing rate was 600 gigabytes per second, the A800 was reduced to 400 gigabytes per second. This reconfiguration aligned with the Commerce Department’s restriction on shipping 600 GB chips to China. Now, the US is also considering expanding the rule to ban chips that process lower speeds.
At the moment, there is no official word from the Commerce Department or other US authorities on new restrictions. The US will likely wait until after Treasury Secretary Janet Yellen makes a planned visit to China in July, according to a source referenced in a Wall Street Journal report. Any increased restrictions before the visit could further degenerate the relationship between both countries. Nevertheless, Nvidia stock could plunge further if the company loses more revenue to expanded restrictions on China shipments.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
When he’s not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.