European Union governments tentatively agreed on Thursday on a $60 a barrel price cap on Russian seaborne oil with an adjustment mechanism to keep the cap at 5% below the market price, according to diplomats and a document seen by Reuters.
The agreement still needs approval from all EU governments in a written procedure by Friday.
Poland, which had pushed for the cap to be as low as possible, had as of Thursday evening not confirmed if it would support the deal, an EU diplomat told Reuters.
Associated Press reported: "Still waiting for white smoke from Warsaw,” said an EU diplomat, who spoke on condition of anonymity because the talks were still ongoing.
Reuters pointed out EU countries have wrangled for days over the details of the price cap, which aims to slash Russia's income from selling oil, while preventing a spike in global oil prices after an EU embargo on Russian crude takes effect on 5 December.
It will allow countries to continue importing Russian crude oil using Western insurance and maritime services as long as they do not pay more per barrel than the agreed limit.
“Since the price cap is lower than what has previously been bandied around, it raises the spectre of some form of Russian supply retaliation which should lend support for oil prices,” Stephen Innes, managing partner at SPI Asset Management commented.