January 19, 2023 15:18 GMT
US Keen for Russian Price Cap to Remain at 60$/bbl
US is pushing for the Russian oil cap to remain at 60$/bbl resisting pressure from some European countries to lower the price according to Bloomberg sources.
- Under the original G7 agreement which came into effect on 5 Dec the price cap will be reviewed every two months. The first review was set to start in mid January with the aim to keep the threshold at least 5% below the average market price.
- The EU review discussion is expected to begin next week. Countries such as Poland and Estonia have previously pushed for a lower cap price.
- The US is waiting for the yet to be agreed refined product cap to be implemented next month before re-evaluating the crude cap price according to Bloomberg sources.
- Unanimity is required to change the cap price so at this stage a change seems unlikely.
- Urals crude from Primorsk was at 45.55$/bbl on Wednesday according to Argus data.