The Group of Seven (G-7) rich nations and Australia have agreed to set a fixed price when they finalise a price cap on Russian oil later this month, rather than adopting a floating rate, sources said on Thursday.
US officials and G7 countries have been in intense negotiations in recent weeks over the unprecedented plan to put a price cap on sea-borne oil shipments, which is scheduled to take effect on December 5 — to ensure EU and US sanctions aimed at limiting Moscow’s ability to fund its invasion of Ukraine do not throttle the global oil market.
“While it’s not yet clear at what level the cap will be set, US officials have signaled that any price should be above $60 a barrel, or high enough to cover production costs and encourage more output,” said a report on Seeking Alpha, a USbased crowd sourced content provider for financial markets.
