• 4 minutes Energy Armageddon
  • 6 minutes How Far Have We Really Gotten With Alternative Energy
  • 10 minutes Russia Says Europe Will Struggle To Replace Its Oil Products
  • 45 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 4 hours Reality catching up with EV forecasts
  • 9 hours A Somewhat Realistic View of the Near Future for Electric Vehicles Worldwide
  • 21 hours "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 11 days US Oil Independence is a myth and will always be a myth
  • 6 days The Federal Reserve and Money...Aspects which are not widely known
  • 11 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 15 days Natural gas price to spike when USA is out of the market
  • 14 days "Biden Is Running U.S. Energy Security Into The Ground" by Irina Slav
  • 14 days *****5 STARS - "The Markets are Rigged" by The Corbett Report

Breaking News:

Freeport LNG Gets Regulatory Approval

EU Agrees To $60 Oil Price Cap

The European Union tentatively agreed to set the price cap on Russian crude oil at $60 per barrel, an EU diplomat told Reuters on Thursday.

The deal must first be agreed to by Poland, who had pushed for capping Russian crude oil prices at the lowest level possible, then by all EU governments by writing by the Friday deadline.

The United States warned the EU on Thursday that the $52 cited recently for Urals crude oil may not reflect the overall level at which Russian oil has been trading. An unnamed U.S. official has said that Urals has been trading at a $17-$23 discount to crude, which would make it higher than the $52 cited by some media.

ADVERTISEMENT

The EU has proposed setting the target $8 above that cited figure.

Poland, Estonia, and Lithuania have all voiced their opinion that the price cap on Russian crude oil insured and shipped by Western companies should be set at far lower rates--$20-$30 per barrel—Russia’s production cost—although those levels were dismissed as having very little chance of being supported by other EU members.

ADVERTISEMENT

The EU’s current proposal is set far above the original ask from Poland, Estonia, and Lithuania. Should one or more of them disagree, the embargo on Russian maritime imports will go into effect as of next Monday, on December 5.

Under the usual market scenario, an embargo would naturally lift the price of crude oil for European buyers. But the price cap would serve to mitigate this price hike—which is why the United States has thrown its support towards the measure, and why it is cautioning the EU not to set the cap so low that they cannot gain consensus. The other issue at play is whether Russia will continue to ship its crude oil if it is price capped—and if so, how high crude oil prices would rise as a result.

By Julianne Geiger for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

ADVERTISEMENT


ADVERTISEMENT


Leave a comment
  • Mamdouh Salameh on December 01 2022 said:
    What has the world come to when a small country like Poland holds the whole EU including great powers like Germany, France and Italy to ransom?

    And whether the EU agrees to set a price cap of $60 or $40 on Russian oil exports, the cap is neither viable nor enforceable. Moreover, it will give President Putin a great pleasure of sinking by halting exports to countries implementing it.

    And while Russia’s oil export revenues won’t be affected even by an iota, the EU and the G7 will be paying far higher prices that they are paying currently thus accelerating their descent to recession.

    Dr Mamdouh G Salameh
    International Oil Economist
    Global Energy Expert

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