The Wall Street Journal reports:

The European Commission has asked the bloc’s 27 member states to approve a price cap on Russian oil of $60 a barrel, according to people familiar with the matter.

The cap by the European Union’s executive body would set Russian crude prices significantly below the international benchmark, called Brent, which traded at about $88 a barrel Thursday.

If the EU agrees on the level, the Group of Seven nations need to sign off on it. The seven countries and Australia aim to have it in place by Monday.

The price cap is part of the West’s attempt to squeeze the Kremlin’s oil revenues while keeping global supplies steady and avoiding an increase in prices. It has been crafted as a way to try to allow Russian oil to sate global markets without Moscow getting the full benefit of its sale.

All 27 of the EU’s member states need to approve the cap, which would be reviewed every two months starting in mid-January, according to the proposal. But members have largely coalesced around a cap of $60 a barrel to such a degree that the commission believes it can get a deal at this level, the people said.

Senior officials from the bloc’s member states began discussing the proposal on Thursday afternoon. A decision was expected later Thursday, EU officials said, although Poland, which had been pushing for a lower price cap for days and requested time to consult with government officials in Warsaw, was yet to respond Thursday evening.

Biden administration officials who have led the price cap push indicated they were supportive of setting the cap at $60 per barrel. Wally Adeyemo, the deputy Treasury secretary, said at a Reuters event Thursday that the U.S. supported reviewing the price every two months. [Continue reading…]