A price cap set by the Group of Seven as well as an outright ban by the European Union on Russian seaborne oil came into effect on December 5. Russian crude is priced below the international Brent benchmark, and the G7 wants to keep that spread wide in order to limit Russian oil revenue.A plan that could work in the long run but could make oil more expensive in the short term, achieving a widespread could mean higher prices for Western consumers as Russia is the world’s second-largest crude exporter, after Saudi Arabia
Details of the plan were worked out by the G7 countries including the EU. The G7 brought in other countries, like India and China, which have been buying oil from Russia at deep discounts since its invasion of Ukraine on February 24.
On Friday, the G7, EU and Australia agreed to set a limit on the price of Russian oil at $60 per barrel. Back in May, the EU announced a ban on Russian seaborne crude oil.The 27-member bloc also said a ban on imports of refined petroleum products will be enforced from February 5
