Russian Ural crude URL-E was trading at around $70 a barrel on Thursday afternoon.
The G7 price cap on Russian marine crude is to kick in on December 5, replacing a harsh EU outright ban on buying Russian marine crude as a way of securing global oil supplies as Russia accounts for 10 of the world’s oil. produces a percentage.
The idea of implementing the G7 cap is to prevent shipping, insurance and reinsurance companies from handling cargoes of Russian crude around the world unless it is sold for less than a price determined by the G7 and its allies.
Because the world’s major shipping and insurance companies are based in the G7 countries, the price cap would make it very difficult for Moscow to sell its oil at a higher price.
The G7 official expressed hope that the bloc will also reach agreement on price caps and exemptions for Russian refined oil products before February 5, when an EU ban on such imports takes effect.
