EU Considers Freezing Russian Oil Price Cap at $44.10/Barrel as Middle East Conflict Pushes Crude Higher

According to Jin10, on May 31, the European Union is considering suspending the automatic adjustment mechanism for its price cap on Russian Urals crude, currently set at $44.10 per barrel, as Middle East conflict drives oil prices higher. The EU's dynamic pricing mechanism, adopted last year, automatically resets the cap every six months at 15% below Russia's average Urals price. A July reassessment could push the cap to at least $65 per barrel, above the Group of Seven's previously agreed $60 level. Freezing the mechanism would maintain the current cap. Alternative options under consideration include suspending automatic adjustments until year-end or capping any increase at the G7's $60 threshold.
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