"G7 considers lowering price cap on Russian crude by $60 → $40 per barrel"

The Group of Seven (G7) is considering lowering the price cap imposed on Russian crude, Bloomberg reported, citing multiple sources.

The sources said the G7 was considering such a move to further weaken Russia's financing capacity at war with Ukraine.

Measures currently being considered include lowering the price cap for Russian crude from $60 (about 87,000 won) per barrel to $40 (about 58,000 won) per barrel.

In addition, various measures are being considered, including an all-out embargo on Russian oil, the sources said.

Earlier, the G7, the European Union and Australia set a price cap of $60 per barrel for Russian crude as part of sanctions against Russia for invading Ukraine in 2022.

The move was aimed at hurting Russia's fiscal revenues by preventing it from buying Russian oil at higher prices.

However, suspicions have emerged that Russia operates a "shadow fleet" that exports its crude oil under the guise of a ship from another country, leading to calls for stronger action in the West.

Analysts say that the G7's review of lowering the price cap on Russian crude oil is based on the judgment that international oil supply and demand conditions are relatively good next year.

The "$60 cap" was "designed to limit Russia's revenue from oil sales while preventing a surge in international oil prices," Bloomberg said, adding that Ukraine's allies were open to more aggressive action as oil prices fell amid the outlook for a global supply glut in 2025.

Sources said they were trying to balance the potential impact of the G7 on the economy and other issues such as maritime safety, weighing possible ways.