The European Union (EU) is poised to agree a $60 price cap for Russian seaborne oil shipments.
An EU diplomat told news agency Reuters an adjustment mechanism to keep the cap five per cent below market value will also be included.
The arrangement now depends on Poland’s approval, with the price needing to be approved by all EU governments by tomorrow.
The cap will take effect from December 5th if the price is agreed, and is meant to slash Russian war following its invasion of Ukraine.
The cap is below the number put forward Group of Seven nations (G7) last week, of $65-70 on Russian oil.
Poland had pushed for the cap to be as low as possible, with diplomats continuing to hold talks with EU officials over the mechanism.
The bloc’s diplomats revealed Lithuania and Estonia, which had backed Poland’s push to set the cap as low as possible, were also on board with the $60 limit.
The three countries have also insisted that the price cap needs to be regularly reviewed to adjust to changing market and geopolitical conditions.
EU government representatives are reportedly open to a potential review every two months.
European Commission head Ursula von der Leyen revealed last week the EU executive was “working full speed on a ninth sanctions package”.
The package includes adding more Russian individuals to the list of people who cannot enter the EU and whose EU assets would be frozen.
This is alongside banning more Russian state-controlled media outlets from broadcasting in Europe, disconnecting more Russian banks from the global SWIFT payments system, and putting export restrictions on more EU products that Russia could use for both civilian and military purposes.
Oil prices have slid in recent months from the 14-year peak of $139 per barrel amid recession fears, with both major benchmarks trading well below $90.
Brent Crude is currently up 2.01 per cent at $88.72 per barrel, while WTI Crude has risen 2.71 per cent to $82.71 per barrel.