G7 Official: We are 'very very close' to agreement on $60-a- barrel price cap on Russian oil exports

Early Friday morning in Asia, Reuters quoted an Official from the Group of Seven Nations (G7) Price Cap Coalition to convey the update over the Russian Oil export price cap.

Key comments

Expected agreement calls for maintaining price cap at 5% below market price for Russian crude.

There is some discretion, flexibility in determining market price for Russian crude for price cap.

Oil markets seem pretty comfortable with cap mechanism on Russian Oil prices.

Not sure how Russia will react to $60 price cap but Russia has no good options.

Price cap will limit Russia's ability to fight the war against Ukraine.

Price caps will be adjusted on a range of considerations including market prices, could go up or down.

Optimistic about agreeing on refined products price cap by February 5.