#EU_Russia: The oil price cap will probably be $60-70 per barrel, while the grace period will be 45 days (if loaded before Dec 5th and unloaded before Jan 19th). On the other hand, the EU is also discussing a cap price for Russian gas that would be €275 per MWh⤵️
(€2,974 per 1,000 m3). This price cap for gas is proposed for a year in futures for a month ahead. Thus, the EU tries to avoid damaging the gas market, while in reality it costs Russia nothing to sell its gas via pipeline or as LNG at a profitable price. Now, the price of⤵️
gas is at the level of €120 per MWh or €1,298 per 1,000 m3. The gas price cap mechanism will be activated in two cases: 1) for 2 weeks, the price exceeds €2,974 per 1,000 m3; 2) the difference between the TTF and the global price of LNG will exceed €58 in 10 business days.⤵️
The decision on the oil price cap will be decided by the G7 and the EU tomorrow (Nov 23). One day after that, the EU will most likely adopt the decision on the gas price cap.
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