EXCLUSIVE U.S. says Russia oil price cap will not be aimed at OPEC - Reuters

LONDON, Oct 19 (Reuters) - New steps from Group of Seven countries to headdress Russian lipid income astatine an enforced debased terms volition not beryllium replicated against OPEC producers, whose plans to chopped output person irked user countries, a United States Treasury authoritative told Reuters.

Washington has communicated to representatives of the Organization of the Petroleum Exporting Countries (OPEC) to reassure them of those limits to its plans and has maintained from the opening that the headdress would not people different lipid producers, the authoritative added.

The comments could assistance easiness a spat betwixt the United States and Saudi Arabia, the apical lipid exporter and de facto OPEC leader, implicit what Washington sees arsenic collaboration with Russia to deprive markets of proviso conscionable arsenic a planetary recession looms.

Tensions person simmered betwixt user countries, specified arsenic the United States and lipid producers implicit output policy, with sources telling Reuters that OPEC choler astir the terms headdress program was among the reasons for its determination to chopped output.

OPEC+, which groups the shaper bloc with allies, including Russia, announced past week that it would chopped accumulation by 2 cardinal barrels per time to equilibrium markets and quell volatility.

Saudi Arabia said the existent simplification would apt beryllium astir 1 cardinal barrels per time (bpd) arsenic respective OPEC members person struggled to conscionable their existing output targets.

The White House said the United States’ investigation showed the chopped could person waited until the adjacent OPEC meeting, aft the November U.S. midterm elections.

But OPEC officials did not nexus the determination to the Russian lipid terms headdress successful their discussions with the United States, U.S. Deputy Treasury Secretary Wally Adeyemo said past week.

The United States past week said the chopped would boost Russia's gross and suggested it had been engineered for governmental reasons by Saudi Arabia, which connected Sunday denied it was supporting Moscow successful its penetration of Ukraine.

The terms headdress owed for Dec. 5 was designed specifically to code Russia's penetration of Ukraine and volition not beryllium carried implicit to different producers, the authoritative added, arsenic their moves to rein successful output thrust up prices.

Nor bash the caller sanctions awesome the opening of a buyer's cartel to antagonistic the interaction of OPEC policies connected the lipid market, the official, who declined to beryllium named owed to the sensitivity of the situation, said.

The Paris-based International Energy Agency grouping of user countries said past week that the OPEC+ chopped has driven up prices and could propulsion the planetary system into recession.

But the U.S. Treasury authoritative saw the cut's terms interaction arsenic muted, saying it mightiness instrumentality a $30-$40 terms surge oregon an output chopped 10 times the size of the existent chopped to OPEC+ output of astir 900,000 bpd to trigger a recession.

The G7 is keen to deprive Moscow of wartime revenues but seeks to debar a planetary proviso shock, which could rise prices and deed their ain citizens arsenic planetary recession fears deepen.

Agreed by G7 nations successful September, the terms headdress plan faced clashing with overmuch stricter European Union bans connected Russian shipments ratified successful June.

The EU agreed to the cap this period but regulatory details person not been ironed out, expanding anxiousness implicit the program successful the lipid manufacture with six weeks to go.

Writing by Noah Browning Editing by Tomasz Janowski and Josie Kao

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