A G7 official confirmed that the price for a barrel of Russian oil shipped by sea will remain at $60, despite rising global crude prices and calls from some countries to lower the price cap to limit Moscow's revenues. The official stated, "The G7 and Australia made the decision to maintain the price cap over the past few weeks after reviewing the $60 set in December, with the aim of limiting Moscow's ability to finance its war in Ukraine."
He added, "Russian crude exports remain stable at over three million barrels per day." Futures for Brent and West Texas Intermediate crude hovered above $80 a barrel. The official noted, "Russian crude is being sold at a discount of about $30 less than the Brent price."
He further mentioned that G7 officials concluded that the price cap is effective in reducing Russian revenues while maintaining stability in the energy market, but they said they would continue to coordinate to ensure effective monitoring and enforcement. The official pointed out that a recent report by the International Energy Agency concluded that the sanctions system adopted by the G7 is effective in "not restricting global crude and petroleum product supplies while simultaneously reducing Russia's ability to achieve export returns."
