Oil prices fell by more than $1 a barrel on Wednesday as the Group of Seven (G7) nations looked at a price cap on Russian oil above where the crude grade is currently trading, according to Reuters.
Brent crude futures fell $1.62, or 1.83%, to $86.74 a barrel at 1101 GMT, while U.S. West Texas Intermediate (WTI) crude futures were down $1.25, or 1.54%, at $79.70 a barrel.
Both contracts rose by more than $1/bbl earlier in the day, but “pared gains following reports that the G7 price cap on Russian oil could be above the level it is trading at the moment”, said Giovanni Staunovo, commodity analyst at UBS.
G7 nations are looking at a price cap on Russian seaborne oil in the range of $65-70/bbl, according to a European official on Wednesday.
Meanwhile, Urals crude delivered to northwest Europe is trading around $64/bbl, according to Refinitiv data.