The G7 and Australia Agree to Cap the Price of Russian Crude Oil at $60 per Barrel.

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The agreement between Australia and the Group of Seven (G7) nations to cap global seaborne crude oil prices from Russia at $60 per barrel was hailed as a major victory by both sides.

Australian and G7 leaders issued a joint statement saying, “We reaffirm our intention to phase out Russian crude oil and petroleum products.”

“There will be no maritime transportation of Russian-origin crude oil and petroleum products in our jurisdictions, except for those purchased at or below a specified maximum price purchased by our own providers.”

The landmark deal is expected to reduce Russian market power in the global oil industry. It will also provide immediate financial relief to some producers who have seen their fortunes suffer due to price volatility and low prices.

The G7 will maintain stability in the global energy markets by capping crude oil prices at this level while limiting Russian influence on international trading.

“Russian oil prices at sea will not be capped at $60, as Australian and G7 nations agreed in this week’s price cap agreement,” Kremlin spokesperson Dmitry Peskov said.

In addition, Peskov said, “Preparations have been made for such a ceiling. We will not accept it, and after the analysis is carried out, which will take place shortly, we will announce how work will be organized.”

According to Deputy Prime Minister Alexander Novak, “Contracting for January is underway. Let’s see how it works. There are uncertainties, but our oil will stay in demand.”

How Russia will respond if the agreement is implemented and enforced across international markets remains to be determined. Until then, both sides will continue negotiating in hopes of reaching a mutually beneficial resolution that allows Russia to maintain some influence over an increasingly uncertain global energy future.

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