G7 plus its allies, opec+, the us treasury, ukrainian president volodymyr zelensky, s&p global commodity insights, and many major shipping and insurance companies were involved in a decision to set the price of russian oil at $60 a barrel, maintain its policy of reducing output, and introduce a $60 cap on russian oil. this was done in order to prevent russia from profiting from its war of aggression against ukraine and to constrain the finances of russian president vladimir putin.
Decision was made at the start of this week, and the eu-wide ban on russian crude oil imported by sea will come into effect on monday. the g7 and australia have said that the measure is designed to limit the money putin has to fund his invasion, while the opec+ decision is seen as a form of support to the oil market.
Easing of covid restrictions in some chinese cities and the introduction of a $60 cap on russian oil has contributed to an increase in oil prices. many major shipping and insurance companies are based within the g7, and russia has declared that they will not accept the price cap imposed by the g7 and has warned that they may stop exporting oil to countries that have adopted the measure. this could lead to disruptions in the oil market and thus an increase in oil prices. russia’s shift to selling oil to other markets such as india and china may soften the blow, as china is currently the largest single buyer of russian crude oil.