picryl
The agency reported, referencing sources close to the matter, that the European Union is contemplating a temporary halt on the price cap for Russian oil as the conflict in the Middle East reaches its fourth month. Bloomberg states that "a freeze would maintain the price ceiling at its existing level."
"Alternative options being evaluated involve halting dynamic and automatic increases until year-end due to the exceptional situation in the Middle East, or limiting any rise to $60, effectively reverting to G7 levels," the agency's sources mentioned. This action would be included in the 21st EU sanctions package.
"The forthcoming price ceiling evaluation in July would probably increase the limit to no less than $65—surpassing the earlier $60 limit established collectively by the G7 nations," the agency's sources indicated.
In 2025, the EU implemented a flexible system for the price cap to be automatically adjusted every six months at a rate 15% lower than the average market price of Russian Urals crude. The existing price cap is $44.10 per barrel and is set to be evaluated later this summer. Beneath this cap, European firms are barred from offering services like insurance and transportation for oil priced above the set limit.
source: bloomberg.com
"Alternative options being evaluated involve halting dynamic and automatic increases until year-end due to the exceptional situation in the Middle East, or limiting any rise to $60, effectively reverting to G7 levels," the agency's sources mentioned. This action would be included in the 21st EU sanctions package.
"The forthcoming price ceiling evaluation in July would probably increase the limit to no less than $65—surpassing the earlier $60 limit established collectively by the G7 nations," the agency's sources indicated.
In 2025, the EU implemented a flexible system for the price cap to be automatically adjusted every six months at a rate 15% lower than the average market price of Russian Urals crude. The existing price cap is $44.10 per barrel and is set to be evaluated later this summer. Beneath this cap, European firms are barred from offering services like insurance and transportation for oil priced above the set limit.
source: bloomberg.com
