EU considers freezing Russian oil price cap, Bloomberg reports

The European Union is considering keeping the current price cap on Russian oil at $44.10 per barrel on a temporary basis, according to the sources.

Under the existing adjustment mechanism, the cap is meant to be reviewed every six months and set 15% below the average market price of Urals crude. However, rising oil prices amid the effective blockage of the Strait of Hormuz could push the cap up to around $65 per barrel, Caliber.Az reports via Bloomberg.

Among the options under discussion is a suspension of the automatic upward adjustment until the end of the year, effectively maintaining the current level.

These measures could be included in a new EU sanctions package against Russia expected to be presented in early June.

By Jeyhun Aghazada