U.S. and allies will cap the prices of Russian oil products such as diesel

U.S. gas prices have been up and down throughout the year and now more uncertainty is on the horizon as a European Union embargo on Russian oil imports kicks in along with a price cap on crude out of Russia. WSJ explains how these moves could impact prices at the pump for Americans. Illustration: WSJ

The U.S. and its allies agreed to cap the sales price of premium Russian petroleum products such as diesel at $100 a barrel and limit low-value ones such as fuel oil to $45 a barrel, expanding their sanctions on Russia’s oil industry.

Just as with the $60 a barrel price cap on Russian crude that the West imposed last year, the agreement will bar Western firms from handling seaborne cargoes of Russian oil products unless they are sold below the set prices. The sanctions aim to keep Russian oil available on global markets to keep prices steady, while also reducing the Kremlin’s revenue in response to its invasion of Ukraine.

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