Russian oil price cap lowered

EU countries and the UK have lowered the price cap for Russian oil.

The UK's new price cap took effect on January 31, followed by the EU on February 1. This marks the first time the adjustment mechanism, introduced as part of anti-Russian sanctions last July, has been utilized.

According to the European Commission, the mechanism is designed to keep the cap at 15% below the average market price for Russia's Urals crude oil from the previous reporting period.

Meanwhile, reports from Bloomberg indicate the EU is considering replacing the price cap with an outright ban on the insurance and transportation services required for shipping Russian oil. Reuters adds that all G7 nations may adopt a similar ban.

Western companies currently provide shipping and insurance services for approximately one-third of Russian oil supplied to the global market.