This means that the upcoming price cap will not apply to the resale of the same Russian cargo. The price cap will also not apply to a cargo of Russian crude that is processed into gasoline when the gasoline is sold. However, intermediate sales and transactions of Russian oil carried out at sea should be subject to the price cap, according to the Journal’s sources. The US and G7 allies and Australia are working to hammer out the details of the price cap ahead of a Dec. 5 deadline, after which an EU embargo on seaborne imports of Russian crude takes effect. The G7 group of the most industrialized countries and the EU are seeking to introduce a price cap on Russian oil, aimed at cutting into Vladimir Putin’s war chest oil revenues. The allies will ban shipping services for Russian oil unless the products are bought at or below a certain price ceiling. Reports emerged this week that G7 members agreed to set a fixed price for Russian oil exports as a ceiling instead of a price set as a discount to a benchmark, Reuters reported, citing an unnamed source familiar with the discussions. The price itself has yet to be determined, the source said, adding that, according to the G7, “This will increase market stability and simplify compliance to minimize the burden on market participants.” Earlier, a range in the mid-$60s was mentioned as a possible target for the ceiling, as it represented the range in which Russian oil traded before the latest rally. While taking into account all the parameters of a price cap, the U.S. Treasury issued guidance this week that says Russian crude oil loaded on a ship at a seaborne loading port before Dec. 5 will not be subject to the price cap if the oil is unloaded at the port of destination before 19 January 2023. By Michael Kern for Oilprice.com More top reads from Oilprice.com:
