Oil slumps in European trade today on reports that the European Union is considering setting a price cap on Russian oil in the $65-70 per barrel range. Such a decision would be in-line with yesterday's media reports saying that the price cap could be set at $60 per barrel or even as high as $70 per barrel. However, disagreements among EU member countries remain and the decision on price cap needs to be unanimous if the EU is to embrace it. Interestingly, $65-70 per barrel cap would not cap prices of Russian oil as Russian Urals benchmark is currently trading at a discount of over $20 per barrel compared to Brent benchmark. However, if implemented, it would cap the price of Russian oil in case of potential price increases.
WTI (OIL.WTI) dropped and tested a support zone in the $80 area, following media reports on a potential $65-70 price cap on Russian oil. Source: xStation5
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile appThis content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
