Latest news with #priceCap
Zawya
a day ago
- Business
- Zawya
Most G7 members ready to lower Russian oil price cap without US
Most countries in the Group of Seven nations are prepared to go it alone and lower the G7 price cap on Russian oil even if U.S. President Donald Trump decides to opt out, four sources familiar with the matter said. G7 country leaders are due to meet on June 15-17 in Canada where they will discuss the price cap first agreed in late 2022. The cap was designed to allow Russian oil to be sold to third countries using Western insurance services provided the price was no more than $60 a barrel. The European Union and Britain have been pushing to lower the price for weeks after a fall in global oil prices made the current $60 cap nearly irrelevant. The sources, who declined to be named, said the EU and Britain are ready to lead the charge and go it alone, backed by the other European G7 countries and Canada. They said it is still unclear what the U.S. will decide, though the Europeans are pushing for a united decision at the meeting. Japan's position also remains uncertain, they said. "There is a push among European countries to reduce the oil price cap to $45 from $60. There are positive signals from Canada, Britain and possibly the Japanese. We will use the G7 to try to get the U.S. on board," one of the sources said. The White House had no immediate comment. During the G7 finance ministers meeting in the Canadian Rockies last month, U.S. Treasury Secretary Scott Bessent remained unconvinced there was a need to lower the cap, according to sources. However some U.S. Senators may endorse the idea, including Lindsay Graham, who in recent weeks told reporters he supports lowering the cap. Graham is pushing a hard-hitting new set of Russia sanctions that could impose steep tariffs on buyers of Russian oil. The EU has proposed lowering the price to $45 a barrel in its latest 18th package of sanctions. The package must have unanimity from member states in order for it to be adopted, which could take several weeks. Russia's largest export grade, Urals, trades at around a $10 a barrel discount to the Dated Brent benchmark out of Baltic ports. Brent futures have been trading below $70 a barrel since early April. Sources said Washington's buy-in was not essential to lower the cap owing to Britain's dominance in global shipping insurance, and the EU's influence on the Western rules-abiding tanker fleet. The U.S., however, does matter when it comes to dollar-denominated payments for oil and its banking system. The EU and its Western allies have been progressively cracking down on Russia's shadow fleet of tankers and related actors, which work to circumvent the cap. The pressure has started to hurt Moscow's revenues and Western allies hope this will push more of the oil trade back under the cap. Russia's state-owned oil producer Rosneft reported a 14.4% slump in profits last year. (Reporting by Julia Payne and John Irish; Additional reporting by Jarrett Renshaw in Washington; Editing by Jan Harvey)
Reuters
2 days ago
- Business
- Reuters
Kremlin says EU-proposed lower Russian oil price cap not helpful for global energy
MOSCOW, June 11 (Reuters) - A lower price cap for Russian oil proposed by the European Commission does not contribute to the stabilization of global energy markets, Kremlin spokesperson Dmitry Peskov said on Wednesday. In its new package of sanctions against Russia over Ukraine, the Commission on Tuesday proposed to lower the Group of Seven nations' price cap on Russian crude oil to $45 a barrel from $60 a barrel in a bid to cut the country's energy revenues. Peskov also called the Western sanctions illegal.
Reuters
22-05-2025
- Business
- Reuters
US 'not convinced' about lower G7 price cap on Russian oil, European official says
BANFF, Alberta, May 22 (Reuters) - A European official said on Thursday that the United States is "not convinced" about lowering the Group of Seven nations (G7) price cap on Russian crude oil. The European Union has proposed revising the cap down to an indicative level of $50 a barrel. The cap, agreed in 2022, was designed to stop Russian oil being sold to third countries using Western insurance services if the price exceeded $60 a barrel, in order to hit Moscow's revenues. Ukraine has pushed for an even lower price of $30 a barrel. The European official, who did not wish to be identified, told Reuters on the sidelines of the G7 finance ministers' meeting in Banff, Canada, that the U.S. treasury team at the meeting took the view that oil prices were already falling and hurting Russia. However, the European official said the U.S. remained open to the idea and discussions would continue. The U.S. Treasury did not immediately respond to a request for comment. Brent oil futures fell to multi-year lows in April and have stayed depressed as U.S. tariff threats weigh on global economic forecasts. On Thursday, Brent oil futures were trading at around $64 a barrel . Russia's main crude grade Urals trades at around a $10 discount to the Dated Brent benchmark. The EU and its Western allies have been progressively cracking down on Russia's shadow fleet of tankers and related players, which work to circumvent the cap. This week, the EU adopted a 17th package aimed at Russia's shadow fleet and Russian oil producer Surgutneftegaz ( opens new tab. EU Executive Vice President Valdis Dombrovskis told reporters in Banff that more sanctions on Russia were discussed at the meeting, including EU ideas to hit energy. Dombrovskis declined to elaborate on the details.
Daily Mail
08-05-2025
- Business
- Daily Mail
Moneysupermarket reaps the rewards after rush to lock into new energy deals ahead of the April price hikes
Moneysupermarket's energy and home services arm surged as suppliers raised promotional deals in advance of prices rising again in April. The company, owned by Mony Group, said that this fuelled a 'modest' rise in revenue from January to the end of April. The group was updating investors ahead of its annual meeting on Thursday. The energy price cap was hiked again in April, with bills reaching an average of £1,849 a year.
