EU Oil Cap Talks Continue in Background

The EU is inching its way towards a Russian oil price cap this week according to diplomats.

• "Consultations have been ongoing since last Wednesday and we are inching towards an agreement, we are closer and closer," one diplomat said.
• "The idea was that a cap of around 5% below the market price would work to make the Russians sell while reducing their revenues," a second senior diplomat said. "But since then prices have kept falling and are now below the cap level, so that level achieves no objective," he said.
• Poland, Lithuania and Estonia have been pushing for a cap of around $30/bbl, which is a long way from the discussions which are around the $62/bbl level.
• Falling crude prices have prompted further discussions on the price cap being dynamic rather than set at a certain level.
• EU government representatives are meeting again on Wednesday and Thursday for regular talks. The oil price cap has not been added to their agenda, but still could be, diplomats said.
• They also said talks would continue in smaller groups to find a deal before Monday.