The United States and its Group of Seven allies will likely agree soon to cap the price of Russian oil at $60-70 per barrel on Wednesday, The Wall Street Journal reported on Tuesday, citing sources familiar with the matter. It is worth noting that the price of a barrel of Brent Crude is $89.43 at the time of writing.

Later on in the day, the ambassadors of the 27 European Union member states will meet to try and reach a decision regarding the issue at hand.

The decision can only be taken if the EU unanimously votes in favor, and the G7 will be voting in parallel to the 27-nation bloc.

The price cap will be implemented on December 5 if the countries agree on its terms.

Following months of debate, the EU reached last month an agreement to impose a price cap on Russian oil sales to third countries, in an attempt to block Moscow's use of EU-registered vessels for its oil exports, all while excluding pipeline deliveries from the 8th round of sanctions on Russia, Politico Europe reported.

Earlier, US Assistant Secretary of Treasury for Terrorist Financing and Financial Crimes Elizabeth Rosenberg said the process of determining a price for the Russian oil price cap agreement has begun. Commenting on whether the price has been set for the price cap on Russian oil during a congressional hearing, Rosenberg said, "The process has begun to set the price."

The EU, White House National Security Council spokesperson John Kirby said Tuesday, is still deliberating on what the Russian oil price cap level should be, with the US maintaining contact with its European allies and partners on the issue.

"I'm not going to get ahead of the EU in terms of what the cap actually is. They are still deliberating on that," Kirby told a press briefing.

"We are in touch with our EU partners about their progress towards this of course and trying to be as supportive as we can be, particularly in terms of the [price cap] implementation," the US official explained.

French President Emmanuel Macron warned in April that Europe deciding to impose a gas embargo on Russia would lead to consequences that would be seen next winter. "We will not see the consequences of this [sanctions against Russian energy resources] in the spring and summer of 2022 [as gas storages have been replenished], but next winter, we will feel them if there is no more Russian gas."

The disruptions in supply chains following Russia's operation in Ukraine and the subsequent comprehensive Western sanctions imposed on Russia caused a sharp increase in energy and food prices across the EU. 

Additionally, Russia pledged to stop exporting its oil to countries that would apply price caps on its oil.

In a notice, the US Treasury Department said that the price cap mechanism on Russian oil implemented by the G7 countries will offer protections for maritime service providers unknowingly involved in cases.

Those who violate the price cap on Russian oil exports will suffer consequences under the domestic law of the jurisdictions enforcing the quota, according to US Deputy Treasury Secretary Wally Adeyemo.