EU nations tentatively agree to price cap on Russian seaborne oil

European Union nations have tentatively agreed to a $60 a barrel price cap on Russian seaborne oil, according to Reuters, with the agreement also including an adjustment mechanism to ensure the cap remains at 5% below market price.

However, the agreement still requires approval from all EU governments, with Poland still pushing for the cap to be as low as possible.

The price cap comes as the EU looks to slash Russia's income from oil sales but also prevent a spike in global oil prices ahead of the bloc's embargo on Russian crude that will take effect on 5 December. It will allow European countries to continue importing Russian crude oil so long as they do not pay more than the agreed limit per barrel.

A senior G7 official told Reuters that a deal was "very, very close" and that it should be finalised in the next few days

Reuters also said it had seen a document that showed the cap would be reviewed in mid-January and every two months thereafter as part of an effort to assess how the scheme was functioning and respond to potential "turbulence" in the oil market.

Reporting by Iain Gilbert at Sharecast.com