G7 countries will keep price ceiling for Russian oil at level of 60 dollars per barrel, Reuters
According to Reuters, the coalition of the "Big Seven" countries (G7) will keep the price limit for Russian oil delivered by sea at the level of 60 dollars per barrel.
This is reported by Censor.NET with reference to European Pravda.
The G7 and Australia decided to keep the cap in place in the past few weeks after reviewing the $60 price set in December. This comes after four weeks of rising oil prices, helped by production cuts announced by OPEC+ and a recovery in Chinese consumption.
On Monday, the market consolidated, Brent crude oil futures and US crude oil remained above 80 dollars per barrel. Russian oil is sold at a discount of about $30 to Brent. Coalition officials concluded that the price cap works to limit Russian revenues while maintaining energy market stability, but said they would continue to coordinate to ensure effective monitoring and enforcement, the Reuters source added.
The coalition is also stepping up efforts to combat evasion of the price ceiling and sanctions imposed on Russia, including the use of deceptive practices to gain access to insurance and other coalition services for oil sold above the ceiling. Coalition members plan to develop guidelines to help service providers spot signs of evasion, such as manipulating vessel tracking or failing to itemize shipping, freight, customs and insurance costs separately from the oil itself, the agency spokeswoman said.
The oil price cap prohibits G7 and European Union companies from providing transport, insurance and financing services for Russian oil and petroleum products if they are sold at a price higher than the cap.
A Reuters source noted that a recent International Energy Administration (IEA) report concluded that the G7 sanctions regime had been effective, "not restricting global supplies of oil and petroleum products, but at the same time limiting Russia's ability to generate export revenues." The IEA said on Friday that Russia's March revenues from oil sales rose by $1 billion month-on-month to $12.7 billion, but were still 43% lower than a year earlier.
Earlier, the European Commission informed EU member states that limiting the price of Russian oil at $60 per barrel is proving effective in limiting the Kremlin's access to petrodollars without disrupting the market, and will remain unchanged for the time being.
