Russia may set a floor price for its oil in response to G-7’s actions

The Group of Seven countries (G-7) set a price cap on Russian oil. Now, companies wanting to get or retain access to G-7’s services have to purchase it at a price of $60 per barrel or lower.

In response to this restriction, Russia is considering the possibility of setting a floor price for its oil in the global energy market.

One of the available options is to set a maximum discount on Russian oil compared to other market prices. At the same time, this discount will be regularly revised depending on the current situation in the global market.

Besides the discount, another option is also considered, which is the setting of a revised fixed price per barrel.

According to one of the officials, Russia is trying to create a transparent pricing mechanism that it can offer to the buyers. The country intends to adhere to a market-based approach in order not to put pressure on neutral countries that purchase its resources.

At present, it remains unknown what the price of Russian oil will be. Traders are closely watching whether it will exceed the set limit or be below this price cap.