US officials may aim to set a price cap for Russian oil exports above $60 a barrel, a higher level than earlier signaled, Bloomberg reported.
That’s based on speeches and references to historical pricing data that officials have said they will use as a partial guide. Earlier discussions on the plan, devised by the US Treasury Department as part of the broader international reaction to President Vladimir Putin’s invasion of Ukraine, focused on a ceiling in the $40 to $60 range.

The United States wants to achieve a price that is high enough to cover production costs and encourage continued production. Meanwhile, Russian President Vladimir Putin and other Russian officials have said they will not sell natural gas to countries that impose limits.

A higher cap would negate one of the publicly stated goals of depriving Moscow of oil revenues. However, it would also serve another purpose: keeping Russian oil in the market, as the US midterm elections are approaching and gasoline prices are rising.

The US position remains in focus, as officials from countries engaged in the program meet this month to set limits on both crude oil and some petroleum products.

 According to Argus Media pricing agency, the average price of Urals oil, Russia's main export product, was $63 per barrel. But this month it averaged almost $74.

The US fears that these restrictions will drive up global prices, so the Treasury Department has developed a program that would allow shippers to use these services as long as the price of their cargo does not exceed the cap.

Until now, the governments of the G7 member countries and the EU have supported this idea in principle. But many details are yet to be revealed.