Contingency planning, negotiations on price both within the administration and with allies, as well as the OPEC+ production cut have also contributed to the delay, the report said.
The lack of the final details about how the cap will work has left the oil industry wondering whether Russian oil in transit on December 5 — an initial deadline — will face sanctions requirements, according to the report.
View of the prices of gas at the Shell gas station on Friday, March 25, 2022, in New York.
© AP Photo / Brittainy Newman
The US, Britain, and the European Union imposed several packages of sanctions against Moscow in response to its special military operation in Ukraine. The sanctions have exacerbated ongoing problems on the fuel markets, resulting in a major energy crisis, rise in inflation, and spiking cost of living across the world.
At the same time, the G7 group has been discussing a possible cap on Russian oil prices, but has not been able to reach an agreement. In the meantime, Moscow has warned that a price cap on Russian fuel would result in another major crisis, adding that Russia would respond to such hostile measures.
Washington was hoping for a decline in fuel costs, as the US has been experiencing rising gasoline prices, urging OPEC+ to boost oil production. However, the group unanimously agreed in early October to decrease oil production by two million barrels per day starting in November in response to uncertainty on global energy markets.