European Commission Proposes $45/bl Price Cap for Russian Fuel Oil
The new price cap is due to come into force on February 5. File Image / Pixabay
The European Commission has suggested setting a price cap for Russian fuel oil exports at $45/bl as it seeks to expand its cap on crude oil prices to the country's refined product exports.
The price cap would be set at $45/bl for discounted products like fuel oil and $100/bl for premium products like diesel, news agency Reuters reported last week, citing comments from European Union officials.
In metric tonne terms for fuel oil a $45/bl price cap would work out at $285.75/mt. For marine gasoil a $100/bl price cap would work out at $746/mt.
At St Petersburg on Friday delivered VLSFO stood at $592.50/mt, while LSMGO was at $810/mt, according to Ship & Bunker data.
The new price cap is due to come into force on February 5 after the details of how it will work have been agreed among G7 governments.