The WSJ reports that the EU is advancing work on a price cap for Russian oil and would be part of a two-step approach working with other G7 countries.
On Dec 5, a ban on Russian oil purchases is set to go into effect. There's some urgency on closing this deal because purchases are booked well in advance.
The ban would be replaced with the global price cap scheme that the US is championing. Potentially, this would allow more Russian crude into the market than otherwise, but Putin said they won't sell to anyone involved in this scheme. The linchpin is the insurance industry, which is largely controlled by European and US companies.
On the gas file, the EU energy chief said a price cap should be coupled with a commitment to curb gas demand further. He highlights a possible flexible price limit on TTF gas (shown below).
WTI crude oil is up $3.09 to $86.74 today.
