OUR Washington forced to cut back on his price cap plan Russian oil, amid growing risk of volatility in the crude oil market amid rising interest rates. Rather than stifle the Kremlin’s oil revenues with a strict price cap closely monitored by a broad “cartel of buying countries,” the US and European Union are likely to agree to a more loosely controlled ceiling at a higher price than originally envisaged. Only G7 members and Australia are committed to this.

South Korea also informed them privately G7 countries that he plans to comply, the sources said. G7 officials are also keen to have New Zealand and Norway join them. But it is clear that India and China – Russia’s most important trading partners – will not participate.

Under the previous plan, a price ceiling of $40 to $60 per barrel was considered, with some officials wanting to keep the cap as close to the lower range as possible. But now officials involved in the plans are discussing a cap closer to $60, although some of them believe that this will allow the Kremlin to continue to earn enough income from sales.

Responding to a request for comment, a senior Treasury Department official said the US had never discussed cap price ranges with allies.

In September, Russia received about $15 billion from oil sales. It is this revenue stream that US and European leaders have been trying to rein in since Russian President Vladimir Putin ordered the invasion of Ukraine. But in a global market dominated by countries without democratic governments led by Saudi Arabia, the mechanics of a price cap designed by buyers looks very complicated.

Brent oil yesterday cost about $96 per barrel. In early March, after the Russian invasion, it rose to over $139.

The average delivery price for Urals, Russia’s main oil, has been $63 per barrel and $64 over the past three years, according to Argus Media. This month it costs about $74.

The change in US attitude towards the price cap came after Washington spent months urging the Europeans to change their sanctions on Russian oil. This development is likely to exacerbate the EU’s frustration, as some officials say they believe the US has been more focused on boosting global oil supplies and has not always been as ready as Europe to take an economic hit to punish Russia.

It is expected that the price cap in its final form will be announced before December 5, when EU sanctions will be introduced. will soon enter into force and relate to the provision of services such as insurance and financial assistance in cases related to the transportation of Russian oil to international customers. However, no decision is expected before the November 8 US election. The EU plans to set a price ceiling around November 25, about 10 days before the bloc’s new sanctions are imposed on Russian oil supply services.