G7 Nations Consider Lowering Russian Oil Price Cap Despite U.S. Hesitation

Amid declining global oil prices, six of the G7 nations are contemplating reducing the existing price cap on Russian oil from $60 to $45 per barrel, even if the United States chooses not to participate. Discussions are set to take place at the G7 summit in Canada from June 15-17, where European Union and Britain are taking the lead.

The existing price cap, established in late 2022, aimed to allow Russian oil to be sold to third countries with Western insurance services, provided it stayed under the $60 threshold. European Union and Britain have called the cap increasingly ineffective due to current market conditions, urging for a coordinated G7 stance.

While U.S. backing remains uncertain, there is a push from European countries for a consensus. Influential U.S. Senators, like Lindsay Graham, are advocating for lower caps and additional sanctions on Russian oil, highlighting the ongoing geopolitical tensions surrounding energy exports amidst a delicate global economic landscape.

(With inputs from agencies.)