Russian oil tops price cap set by Western countries for first time | CNN Business

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The price of Russian crude oil has risen above a price cap set by the Group of Seven nations, in the first “real test” of whether the West can enforce one of its key sanctions against Moscow

The benchmark price of Russian Urals crude topped $60 a barrel Wednesday, according to data from Argus Media. The breach comes eight months after the G7 and the European Union introduced the cap, preventing Western firms from providing shipping, insurance and other services needed to export Russian seaborne oil unless it is priced below the threshold. The benchmark price was calculated based on the average price quoted by buyers, sellers and brokers who spoke with Argus Media’s analysts.

A barrel of Urals crude traded at $38 on March 20, its lowest level since the start of the war in Ukraine, compared with $71 for a barrel of Brent that day. But on Thursday, a barrel of Urals crude traded at nearly $64 to Brent’s $81. That’s a 48% reduction in the gap between the two. The smaller gap shows that the G7 price cap is “having a diminishing impact on Russian oil revenues,” Richard Bronze, co-founder and head of geopolitics at Energy Aspects, told CNN.

 

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