• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 3 hours How Far Have We Really Gotten With Alternative Energy
  • 3 days Can Solar Panels Regenerate Prairies?
  • 3 days Canada’s Carbon Capture Ambitions Have Hit A Roadblock
  • 8 days Shout out to the US EPA for sheer craziness
Why Putin Met Kim Jong-Un

Why Putin Met Kim Jong-Un

Following the Wagner uprising and…

4 Days from Deadline, EU Fails To Agree On Russian Oil Products Price Cap

After delaying a vote on Wednesday due to disagreements among member states, member nations of the European Union are hoping to strike a deal on a price cap for Russian oil products this Friday, Reuters reports, citing unnamed diplomats.

Last week, the European Commission had put forward a proposed price cap of $45 per barrel for discounted Russian oil products, such as fuel oil. The EC also proposed a $100/barrel restriction on premium Russian oil products, such as diesel. 

A settlement is hoped for on Friday, but optimism is not running high as all 27 members of the bloc must agree on the final price cap figures in order to move forward by February 5th, when the price cap is set to go into effect. 

A similar chain of events took place last week, when EU officials failed to reach an agreement on Friday, January 27th.

Last week, EU officials also discussed the G7’s $60/barrel price cap on Russian crude, which is set to be reviewed every two months. 

In December, the EU agreed that the price cap set on Russian crude oil (currently $60) should be maintained at a minimum of 5% below average market rates.

The Baltic states of Estonia and Lithuania, along with Poland, are all pushing for a lower price cap on Russian crude, while simultaneously pressuring the bloc for a higher price cap on Russian oil products starting on February 5th. These countries are seeking a $40-$50 price cap on Russian crude to hamper Moscow’s revenue collections, which are financing Putin’s war against Ukraine. 

With regards to the February 5th price cap on Russian oil products, diesel remains a significant hurdle in the agreement. According to the European Commission, the $100 price cap on Russian diesel may be high enough to ensure that Moscow continues to export, but could result in Asian buyers balking at prices and opting instead to buy cheap Russian crude and refine diesel at home, Reuters reported. 

By Charles Kennedy for Oilprice.com

More Top Reads From Oilprice.com:

Join the discussion | Back to homepage

Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News