G7 group of nations, opec+, australia, and the eu were all involved in the agreement to cap the price of russian oil at $60 (â£49) a barrel. this decision was made in response to brent crude prices standing at around $86 in asia trading, and was announced by the g7 and australia in order to constrain the finances of russian president vladimir putin.
the price cap on russian oil was set to come into force on monday or “very soon thereafter”, and the eu-wide ban on the import of russian crude oil via sea was also set to take effect on the same day. the agreement was made in response to traders reacting to strong us jobs data and the easing of covid restrictions in some chinese cities, which has generated optimism in the market.
opec+’s decision to keep the quota in place is implicit support for the oil market, and russia is able to sell its oil to other markets, such as india and china, who are currently the largest single buyers of russian crude oil. prices of oil and gas have also risen due to worries that russia’s invasion of ukraine could affect supply. the g7 and its allies agreed to the price cap in order to limit the financial power of russian president vladimir putin, and to protect the global oil market from disruption.