US Remains Unconvinced on Lowering G7 Russian Oil Price Cap

The United States remains hesitant to lower the Group of Seven (G7) price cap on Russian crude oil from the current $60 per barrel to $50, a move proposed by the European Union with Ukraine advocating for an even lower $30 cap. U.S. officials at the G7 finance ministers' meeting in Banff, Canada, argue that market forces are already causing oil prices to decline, thereby impacting Russia's revenue without the need to adjust the cap. Brent crude prices have been trading around $64 per barrel, with Russia's Urals blend discounted by about $10, supporting the U.S. position that the cap is effectively limiting Russian oil income. Despite this hesitation, the U.S. remains engaged in ongoing discussions and has not ruled out revisiting the cap level. Meanwhile, the EU continues to intensify sanctions, recently implementing its 17th package targeting Russia's shadow tanker fleet and key oil producers like Surgutneftegaz. European Commission Vice President Valdis Dombrovskis confirmed that further energy-related sanctions are under consideration, but declined to provide specifics.