12/4/2022
EU Tentatively Agrees on $60 Per Barrel for Russian Oil Price Cap
The EU has tentatively agreed on setting the price cap on Russian oil at $60 per barrel, Reuters reported on Thursday.
The plan would also include an adjustment mechanism to keep the price cap 5% below the market value.
The EU is setting the price cap at the request of the G7, which asked for the price to be slightly higher, somewhere between $65 and $70 per barrel.
The EU governments still need to formally sign off on the price cap plan, which is expected to happen on Friday.
The bloc struggled to set a price as Poland was seeking a drastically lower number, around $20 to $30 per barrel.
No matter what the price is, Russia has said it will retaliate and cut off any country trying to impose price caps on its energy. If Moscow retaliates by slashing oil production, it will send global prices skyrocketing.
December 5 is the day that an EU oil embargo on Russia comes into effect, although there are exemptions for Hungary and other land-locked countries.
The EU sanctions will also prohibit insurance and other services for shipments of Russian oil.
Source: Antiwar.com
