Almost no Russian oil is sold below $60 cap, say western officials

Stay informed with free updates

Simply sign up to the World myFT Digest — delivered directly to your inbox.

Good morning.

The US-led price cap on Russia’s oil sales is being almost completely circumvented, according to western officials and Russian export data.

A senior European government official said “almost none” of the shipments of seaborne crude in October were executed below the $60-a-barrel limit that the G7 and its allies have attempted to impose.

“The latest data makes the case that we’re going to have to toughen up . . . there’s absolutely no appetite for letting Russia just keep doing this,” the official said.

Moscow’s ability to circumvent the price cap has forced countries to explore ways to reinforce one of their key economic sanctions against the Kremlin, including clamping down on Russia’s access to the used oil tanker market.

Concerns in the west are backed up by official Russian statistics on oil sales in October showing the average price received was above $80 a barrel. Read more on efforts to reinforce the cap.

• ‘Mosquito navy’: Ukraine’s scrappy naval force is punching above its weight in the Black Sea, and they need America’s continued support, writes Rose Gottemoeller, former deputy secretary-general of Nato.

Here’s what else I’m keeping tabs on today:

• Economic data: Employment figures are due from the EU, the UK and South Africa. The US and Spain release consumer price indices for October, and Zew publishes its economic sentiment report for the eurozone.

• UK parliament: Alistair Macrow, the chief executive of McDonald’s UK and Ireland, answers questions from MPs on the company’s alleged toxic workplace culture, including claims of sexual harassment.

• Results: Getty Images, Home Depot, Imperial Brands, Land Securities, Oxford Instruments, Vodafone and Wise report.

Five more top stories

1. Exclusive: UK Prime Minister Rishi Sunak should appoint a high-level investment minister and create a beefed-up “concierge service” to attract foreign cash to the UK, according to a report to be published ahead of chancellor Jeremy Hunt’s Autumn Statement next week. Lord Richard Harrington’s proposals come as Hunt tries to improve Britain’s foreign direct investment inflows in the face of heightened overseas competition.

2. Equity specialists at some of the world’s largest asset managers are digging into new data sources to convince clients to keep investing in stocks in a world of higher interest rates. Net flows into equity funds have been practically flat so far this year, according to EPFR, but specialist portfolio managers are keen to argue that there are still opportunities in the stock market — by looking back at long-term averages.

3. Disney-owned broadcaster ESPN is taking aim at the US sports betting market, teaming up with casino group Penn Entertainment to launch an app designed to crack the duopoly of DraftKings and FanDuel. Penn has agreed to pay the sports network $150mn a year to secure a 10-year licensing deal for ESPN Bet, which is launching in 17 states. Read more on ESPN’s foray into online sports betting.

4. Exclusive: The incoming chair of the international certification scheme for conflict diamonds has hit out at a G7 plan to track and trace Russian diamonds. Ahmed bin Sulayem, who this week was elected to take charge of the Kimberley Process, warned against “irreparable harm” to African producers and said any proposed scheme “must take into account African diamond-producing nations”.

5. The president of one of the world’s biggest insurance brokers has warned that the industry should be “very careful” about offloading big global risks such as natural catastrophes and cyber attacks to the public sector. Speaking at the PwC Insurance Summit in Bermuda, Aon president Eric Andersen said the industry needed to be “more aggressive” in absorbing some of the risks, arguing that once offloaded to the public sector, the business might never come back to private companies.

The Big Read

Over the past eight years, Barclays has careened from scandal to screw-up, with a former chief executive found to have misled regulators over his relationship with a convicted sex offender and a paperwork blunder that led to hundreds of millions of pounds in fines and compensation. Now, chief executive CS Venkatakrishnan is pinning his hopes on a strategic review of the business and another round of cost cuts to fix the British bank’s troubles.

We’re also reading and listening to . . . 

Graphic of the day

The chaotic withdrawal of US troops from Afghanistan and the rotation of air defences from Saudi Arabia in 2021 worsened the perception in the Arab world that Washington was disengaging from the region. Now, with multiple threats from the “Axis of Resistance” — regional militant groups armed and supported by Iran — the US is again bolstering its Middle East defences and deterrence efforts.

Take a break from the news

From protein bars to meat alternatives, ultra-processed foods are a hit because they are cheap and convenient. But an increasing number of health experts say they are bad for us and raise the risk of diseases such as diabetes and cancer. Governments are considering how to advocate for more balanced diets that feature whole foods instead, but kicking the ultra-processed habit may take some time.

Additional contributions from Benjamin Wilhelm