EU Considers Maintaining Temporary Price Cap on Russian Oil

The European Union is considering maintaining the temporary price cap on Russian oil. The reason is the ongoing conflict in the Middle East, which has increased uncertainty in the energy market.

Under current rules, the price cap imposed on Russian oil is updated once every six months and is set at 15 percent below the average market price of Urals crude. Currently, this cap stands at $44.10 per barrel. If Russian oil is sold above this price, European companies are prohibited from participating in its transportation and insurance. A new price cap figure should be determined in summer, however, the EU is currently considering whether to keep it temporarily unchanged. Diplomats are discussing several options: maintaining the existing price, halting automatic changes until year-end, or increasing the cap to $60 per barrel to bring it more in line with G7 rules. The final decision is expected to be included in the 21st sanctions package against Russia, which the EU plans to approve in early June.

Source: Investing.com