The United States and allies have discussed capping the price of Russian crude at $40-60

According to people familiar with the matter, the United States and its allies have discussed efforts to limit the selling price of Russian crude to around
$40 to $60 per barrel.

Discussions began ahead of the G7 summit, as allies explore several ways
to limit Russian oil revenues (3, 0.
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00%) while minimizing the impact on their own economies.
At a June 28 summit in Germany, leaders agreed to examine options for limiting oil prices, such as banning insurance and transportation services required to transport Russian crude oil and petroleum products unless the price is below their prescribed level
.

People familiar with the matter said that the range is what allies consider Russia's marginal production costs to oil prices
before the Russian-Ukrainian conflict.
Two people familiar with the matter said the Biden administration believes the $40 cap is too low
.
The allies aim to cut Moscow's revenues that could be used for military operations, but the risk is that oil prices will soar
if the measures are not implemented properly.

The exact scope will depend on market conditions at the time the parties agree on a cap, and market conditions are subject to significant changes
.
Russian crude could be trading around
$80 a barrel before Monday's small fluctuation in nominal oil prices.
Since the conflict, information about the country's oil transactions has become increasingly mysterious
.

The Biden administration has so far failed to impose extraterritorial secondary sanctions on Russia, and European allies have been concerned about such practices
.
One of the people familiar with the matter said the move and limiting oil prices could be a last resort
.

Biden administration officials now meet several times a week to try to make the limit a reality
, an official said.
The official said efforts on the issue would be ramped up in the coming weeks
.

A spokesman for the White House National Security Council did not comment
.

The G7 and the EU have agreed to phase out imports of Russian oil
.
But Russia's cash receipts could still be as high as $800 million a day this year, and that's just what it gets from oil and gas
.

India spent $5.
1 billion on products such as Russian oil in the three months to May, more than five times
more than a year ago, the latest figures showed.

For the U.
S.
push for the concept of an oil price cap to work, it also needs to provide more incentives
for these countries to be willing to participate.
Oil buyers need to be able to buy at a lower price and access critical services
such as insurance to transport commodities.
This threshold also has to make Russia willing to continue to export
.

The U.
S.
is also weighing a number of potential enforcement tools, including possible restrictions on shipping companies that ship Russian oil at higher prices and sanctions on any banks and financial institutions
that facilitate oil sales above the limit, the people said.