NRGU - G-7 to keep Russian oil price cap unchanged at $60/bbl - report

2023-04-17 18:20:49 ET

The Group of Seven countries will keep a $60/bbl price cap on seaborne Russian crude oil, Reuters reported Monday, despite rising global crude prices and calls by some countries for a lower price cap to restrict Russia's revenues.

The Biden administration has led the push to keep the cap unchanged, despite rising global crude prices and confusion over how much crude oil Russia is keeping on the market, or even if Russia is selling its volumes in compliance with the G-7 cap.

Such questions caused an effort by some G-7 countries to lower the capped price by as much as half to $30/bbl, but G-7 officials concluded the price cap was working to both limit Russian revenue while maintaining energy market stability, according to the report.

Front-month Nymex crude oil ( CL1:COM ) for May delivery settled -2% to $80.83/bbl, while front-month June Brent crude ( CO1:COM ) closed -1.8% to $84.76/bbl.

ETFs: ( NYSEARCA: USO ), ( BNO ), ( UCO ), ( DBO ), ( SCO ), ( USL ), ( DRIP ), ( GUSH ), ( USOI ), ( NRGU )

Energy ( XLE ) was one of Monday's poorest performers on the S&P 500 leaderboard, -1.2% , with noteworthy decliners including Marathon Oil ( MRO ) -3.6% , APA Corp. ( APA ) -3.1% , Valero Energy ( VLO ) -2.7% , ConocoPhillips ( COP ) -2.6% and Occidental Petroleum ( OXY ) -2.4% .

Both the WTI and Brent crude benchmarks tallied their fourth straight weekly gains last week .

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