Oil prices rose slightly on Friday, as the European Commission reportedly prepares to propose a floating price cap on Russian oil.
Brent crude futures were up 0.16% to US$68.75 per barrel, as of 3:15 pm (AEST). West Texas Intermediate increased by 0.24% to $66.73 per barrel.
The European Commission is drafting a plan to adjust the price cap on Russian oil based on global oil price changes, according to Reuters. The current price cap set by the Group of Seven nations is US$60 per barrel, and was implemented in December 2022.
The Commission had proposed lowering the Russian oil price cap to US$45 per barrel in June, under a new set of sanctions against Russia for its invasion of Ukraine. The new cap is reportedly likely to start just above $45 per barrel.
Russia’s government is also considering a new ban on gasoline exports in August and September, as domestic fuel prices rise. Gasoline exports are already banned for traders and producers with an annual output below 1 million tons until at least August.
United States Secretary of State Marco Rubio met with Russian Foreign Minister Sergei Lavrov on the sidelines of the ASEAN foreign ministers’ meeting to discuss an end to Russia’s invasion of Ukraine.
“We need to see a roadmap moving forward about how this conflict can conclude,” Rubio said he told Lavrov.
Meanwhile, U.S. President Donald Trump has said the U.S. will impose a blanket 35% tariff on imports from Canada, separate from sector-specific tariffs on goods like copper. He also plans to add blanket tariffs of 15-20% on most trading partners, up from the current 10% rate.
Markets have grown less reactive to Trump’s tariff announcements due to his frequent reversals, however, according to Onyx Capital Group head of research Harry Tchilinguirian. “People are largely in wait-and-see mode, given the erratic nature of policymaking and the flexibility the administration is showing around tariffs.”
