The price ceiling on Russian oil is approaching. In the game is 60 $ per barrel with an adjustment mechanism

European Union member states have tentatively agreed to introduce a price cap on oil of Russian origin to be supplied to Europe by sea. The EU is likely to move towards the G7 proposal.

Ceiling at 60 $

Oil of Russian origin could be imported into the European Union for no more than $60 a barrel. This is the proposal of the G7 group of countries, on which the representatives of the twenty-seven countries have provisionally agreed. This cap would also include a mechanism whereby the capped price should be approximately 5 percent below the market price. The cap would apply to oil transported by tankers, not by pipelines.

Will the countries agree?

The preliminary agreement still needs to be approved by the governments of all European Union member states. According to Reuters, Poland could have a problem with the parameters of the proposed agreement, demanding that the ceiling be set as low as possible.

The price cap is due to be revised in mid-January and every two months thereafter. Initially, a 45-day transition period would also apply to vessels transporting Russian oil and would apply to tankers loaded before 5 December and unloaded at their destination by 19 January 2023.

author avatar
EditorialTeam
The Trader-Magazine.com EditorialTeam is a collective of certified financial analysts, active traders, and cryptocurrency experts. Our mission is to transform complex market data (forex, equities, indices) into accessible financial education. All content undergoes rigorous, multi-level fact-checking to ensure we deliver only accurate, objective information for your trading and investment decisions.

Top 10 financial instruments for 2022. What will their prospects be in 2023?

The year 2022 has brought countless surprises and obstacles...

Telegram scams: how they work and how to protect yourself

Telegram has become one of the most widely used...

Trump Saved TikTok from a Ban. The App in the U.S. Moves into American Hands

TikTok narrowly avoided a ban in the United States...

Gulf Brokers Ltd. Review

Comparing spreads, commissions, trading platforms, rules and reading dozens...

Climate Change Poses Major Risks to Financial Markets, Regulator Warns

WASHINGTON — A top financial regulator is opening a...

AI Boom Beyond Nvidia stock: Which Lesser-Known Equities Are Riding the Wave?

For many investors, Nvidia stock has become almost synonymous with the...

FT: EU plans to remove barriers for banks’ cross-border capital flows

The European Union plans to remove barriers for banks...

Why find a credit card with a lower APR?

Credit cards can be useful financial tools. They make...

SpaceX on Wall Street: a historic IPO and the first trading days

The SpaceX listing ranked among the largest IPOs in history, raising $85.7 billion. Massive investor demand expanded the capital that the company will now use to finance its next phase of development.

CD Ladder Calculator: How to Build a Smarter Savings Strategy

A CD ladder calculator can help savers plan how to earn...
spot_img

spot_imgspot_img