US Seen Pushing for Russian Oil Price Cap to Stay at $60
- Some European countries want lower price to pressure Moscow
- Russian Urals oil selling at steep discount to Brent crude
Pumping jacks operate in an oilfield near Neftekamsk, in the Republic of Bashkortostan, Russia.
Source: Bloomberg
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The Biden administration is inclined to oppose any move to lower the price cap on exports of Russian crude oil, despite a push by some European countries to squeeze Moscow’s revenues even more, according to people familiar with the matter.
Russia’s flagship oil Urals is trading far below international prices — and the Group of Seven’s $60 per barrel cap that came into effect on Dec. 5. The European Union agreed to review the price cap every two months, starting in mid-January, with an aim to keep the threshold at least 5% below the average market price.