EU cuts Russian oil price cap to $47,6 - Here's how markets react
Photo: Oil prices ignored new cap on Russian oil (Getty Images)
Oil prices rose by less than 1% after the European Union agreed to lower the price cap on Russian crude oil, Bloomberg reports.
The price of Brent crude exceeded $70 per barrel, while West Texas Intermediate surpassed $68 per barrel.
Prices were also influenced by data showing that the US economy continues to stand the test of time, despite the impact of the trade war initiated by Washington. Strong US economic indicators eased concerns about the world's largest economy, boosting risk sentiment and driving gains in global stock markets.
New sanctions package
Earlier, EU member states agreed on the 18th package of sanctions against Moscow, including a reduction in the price limit for Russian oil, according to EU High Representative for Foreign Affairs and Security Policy Kaja Kallas.
The new price cap will be set $15 below market prices and will be automatically reviewed at least twice a year, depending on market conditions.
The package also includes restrictions on Russian oil refined in third countries. A major refinery in India, partially owned by Russia's state oil company Rosneft, has also been blacklisted.
Since Russia's invasion of Ukraine in 2022, the EU has adopted a series of sanctions packages, including price caps aimed at cutting Moscow's energy revenues while attempting to maintain market flows and avoid a sharp spike in global oil prices.
Diplomats told Reuters that the new package will lower the G7-imposed price cap on Russian crude oil from $60 to $47.60 per barrel.
Awaiting US sanctions
Previously this week, US President Donald Trump also threatened to impose stricter financial sanctions on Russian energy, including measures targeting countries that buy Russian oil, such as India and China.
India has already stated that it would have no problem halting purchases of Russian oil if secondary US sanctions are implemented.
