Last week the G7 discussed a price cap for Russian Ural crude. The cap discussed ranged between $65 and $70 per barrel. However, Poland, Lithuania and Estonia have objected, arguing that Russian oil is already being sold cheaper.
Thus, on Thursday, EU representatives discussed a lower level of the ceiling. “The new level that is being discussed is now $60 a barrel, but negotiations are continuing,” Reuters said, quoting an EU diplomat familiar with the situation. The same data was then confirmed to the agency by two other sources, specifying that the agreement has not yet been concluded.
Furthermore, Poland, Lithuania and Estonia insist that the price cap is regularly adjusted to changing market and geopolitical conditions. Negotiations on a possible modification of the ceiling could therefore be repeated every two months.
Russian oil has hit its ceiling on the markets
Economic
For a long time, Urals has been trading at a discount to North Sea Brent oil, which priced close to $89 (CZK 2,065) a barrel on Thursday. At the beginning of the week, however, it cost seven dollars less, reaching the values at the beginning of the year.
By imposing a price cap on Russian oil imported by sea, Western countries are trying to deprive Russia of the oil export earnings that help it finance its war in Ukraine, which it attacked in February this year.
In addition to the ceiling, the EU is also introducing a ban on the import of Russian oil (not only by sea, but also by pipeline) from December 5, which will also be extended to petroleum products on February 5.
However, several countries have negotiated exemptions from these bans. For example, the transport of crude oil through the Družba pipeline supplying Czechia, Slovakia and Hungary will be temporarily excluded from the embargo. Unlike other countries, Czechia will also be able to import Russian petroleum products from refineries in other EU countries until December next year.
Head of the IEA: Russia has forever lost to Europe as the largest consumer of energy
Economic
