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EU Set to Resume Oil Cap Discussions

OIL

EU discussions on the Russian oil cap are set to resume again this week. The meeting set for Friday night to try and finalise a deal was cancelled due to “not enough convergence of views” according to EU officials.

  • The diplomats also ruled out any further meetings over the weekend.
  • The discussions have failed to reach consensus on the actual cap level which was originally touted at the $65-70/bbl level, which a number of EU nations have blasted as too high.
  • The idea of the cap is to prohibit shipping, insurance and re-insurance companies from handling cargoes of Russian crude around the globe, unless it is sold for less than the price set by the Group of Seven nations and its allies.
  • G7 hosts most of the world’s shipping and insurance firms. Controlling these services is what the caps effectiveness hinges on.
  • Poland, Estonia and Lithuania are reported to be pushing for the harshest cap level.

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