The EU may impose a price cap on Russian oil — Bloomberg
The European Union is considering temporarily suspending the mechanism for revising the price cap on Russian oil due to rising tensions in the Middle East and a surge in global oil prices.
This was reported by Bloomberg.
Last year, the EU introduced an automatic price cap review mechanism, under which the cap is set every six months at 15% below the average market price for Russian Urals crude. Currently, the price cap stands at $44.10 per barrel.
According to the agency, due to rising prices following the escalation of tensions in the Strait of Hormuz, the July review could raise the limit to approximately $65 per barrel, exceeding the G7’s previous cap of $60.
Among the options being discussed are maintaining the current cap, suspending the automatic review until the end of the year, or setting a maximum limit of $60 per barrel.
The new, 21st package of EU sanctions may also include additional restrictions against banks, oil traders, refineries, and crypto platforms in third countries that help circumvent sanctions. In addition, the EU is considering expanding the sanctions list to include vessels of the so-called “shadow fleet” and tightening export controls for companies in China, India, Turkey, and Central Asian countries.
As a reminder, amid the escalating situation in the Middle East, the discount on Russian Urals crude began to rise for the first time in recent months. However, experts say that high oil prices will not save the Russian economy from a slowdown.
The price of Russian Urals crude at Indian ports jumped to a record $121.65 per barrel.
