EU officials are considering a temporary freeze of the automatic six-month reset
of the Russia oil price cap after Middle East fighting and Strait of Hormuz
disruptions pushed crude sharply higher, sources said. The mechanism, adopted
last year, sets the cap at 15% below the Russian Urals market average; the
current cap is $44.10/bl and is due for reassessment in late summer. Under the
cap, EU firms are prohibited from providing insurance, shipping or other
services for oil sold above the cap. Sources said a July review could raise the
cap to at least $65/bl — above the $60 level previously agreed by the G7 — while
a freeze would keep it at the current level.
