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View all search resultsWestern officials finalizing plans for Russia oil-price cap
Officials said no price range had been decided yet, however one person familiar with the process said the cap would be determined in line with the historical average of US$63-$64 a barrel—a level that could form a natural upper limit.
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U
nited States and Western officials are finalizing plans to impose a cap on Russian oil prices amid a warning from the World Bank that any plan will need active participation of emerging market economies to be effective.
Officials said no price range had been decided yet, however one person familiar with the process said the cap would be determined in line with the historical average of US$63-$64 a barrel—a level that could form a natural upper limit.
Such a level is in line with recent comments by Treasury Secretary Janet Yellen that a price cap in the $60 range would give Russia an incentive to keep producing oil.
The administration of US President Joe Biden has seen the price cap as a way to cut oil revenues for Russia, a major source of its funding for its war against Ukraine, while keeping Russian oil flowing and avoiding price spikes.
The actual price will be set in coming weeks ahead of the planned Dec. 5 launch of a European embargo on Russian oil and associated restrictions on transportation and insurance of seaborne oil.
A senior Biden administration official said reports of any price range were wrong, but declined to elaborate.
US officials pushed back against a report by Bloomberg News quoting unnamed sources saying they were being forced to scale back plans for the price cap, with fewer participating countries and a higher price level.
