G7 agrees to set fixed price for Russian oil

The Group of Seven rich nations and Australia have agreed to set a fixed price when they finalise a price cap on Russian oil later this month, rather than adopting a floating rate, sources said. US officials and G7 countries have been in intense negotiations in recent weeks over the unprecedented plan to put a price cap on sea-borne oil shipments, which is scheduled to take effect on December 5 – to ensure EU and US sanctions aimed at limiting Moscow’s ability to fund its invasion of Ukraine do not throttle the global oil market.
“The coalition has agreed the price cap will be a fixed price that will be reviewed regularly rather than a discount to an index,” said a coalition source, who was not authorised to speak publicly. “This will increase market stability and simplify compliance to minimise the burden on market participants.” The initial price itself has not been set, but should be in coming weeks, multiple sources said. -PNP