EU has tentatively agreed to price ceiling on Russian oil

(MENAFN) As per Reuters, the European Union has informally agreed on a $60 per barrel price restriction on Russian seaborne oil. The preliminary agreement is thought to contain an adjustment mechanism to keep the cap at 5% below market pricing.

According to the source, the accord still needs official approval from all EU countries by Friday.

According to a draft document seen by the media source, the bloc intends to establish a mechanism that would allow for bimonthly modifications of the maximum price at which Russian oil may be purchased. It would include reviews of how the program is working, allowing the EU to respond to any "turbulences" in the oil market as a result.

A 45-day "transitional period" would apply to boats carrying Russian-origin crude oil that were loaded before December 5 and emptied at their ultimate destination by January 19, 2023, according to the paper.

Since last week, EU members have remained stuck as Poland and the Baltic states urged steps to put additional pressure on the Kremlin's income. An EU diplomat told Reuters that Warsaw, which had pressed for a $30 price restriction, had not indicated if it would approve the arrangement as of Thursday evening. The nations must reach a deal by Monday, when the EU's oil sanctions take effect.

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