Russian Oil Price Cap Will Not Apply To Resold Cargoes

The United States and its Western allies have agreed that a cargo of Russian oil will only be subject to the price cap mechanism at the first sale of the oil to a buyer on land, sources familiar with the ongoing discussions told The Wall Street Journal on Friday. This means that the upcoming price cap will not apply to the resale of the same Russian cargo.

The price cap will not apply to a cargo of Russian crude processed into gasoline when the gasoline is sold, either. However, intermediary sales and trades of Russian oil happening at sea should…