Oil continues to decline while the EU disputes the price limit for Russian oil

The European Union considers the price cap for Russian oil to be higher than expected. In combination with intensifying signs of a global slowdown, this caused oil to continue falling.

There is discussion about the level of limit for Russian offshore exports. EU officials are ready to set the price at $65-70 per barrel. This is much higher than many expected. Bloomberg reports about additional negotiations due to a disagreement on details between the embassies. The negotiations are scheduled for Thursday.

The high price cap could lead to a minimal effect on the trade in the end.

Vandana Hari, founder of Vanda Insights, said that all the measures look even more irrelevant, since only the amount can be agreed upon, which may not differ much from the Urals trade at the present time. In his opinion, trading of Russian oil would continue, just with significant discounts.

Goldman Sachs Group Inc. has expressed doubts about the possibility of applying a higher price cap to reduce the risk of retaliatory measures by Russia.