CURRENT AFFAIRS

Detailed explanation-1: -Questions and Answers: G7 agrees oil price cap to reduce Russia’s revenues, while keeping global energy markets stable. What does the oil price cap achieve?

Detailed explanation-2: -G7–which consists of the United States, the 27-nation European Union, Canada, Australia and Japan– set at a maximum price of 60 USD per barrel for Russian crude oil with the provision that the cap can be adjusted in the future in order to respond to market developments.

Detailed explanation-3: -Under an agreement reached among a coalition of countries, the G7 will impose price caps of $100/b on imports of Russian products that typically trade at a premium to crude, such as diesel, kerosene and gasoline, and $45/b on products like fuel oil that generally trade at a discount to crude.

Detailed explanation-4: -The Price Cap Coalition of the G7, the European Union and Australia have set caps on the price of seaborne Russian oil products, effective from 05 February 2023. High-value Russian exports such as diesel and gasoline, will be capped at $100 while lower-value products such as fuel oil will be capped at $45.

Detailed explanation-5: -After months of member state wrangling and debate, the European Union (EU) has finally agreed a plan which will ban seaborne imports of Russian oil and introduce an oil price cap at $60 a barrel.