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The European Union has reached an agreement on a $60 per barrel price cap for Russian oil after Poland dropped its objections, according to the Financial Times.

Poland previously objected to the proposed level of oil prices and demanded that it be reduced.

According to Andrzej Sados, Poland's permanent representative to the European Union, the EU may now begin a written approval process for the deal with plans to formally announce it on Sunday.

The agreement also includes a price review mechanism that will keep the price cap at 5% below the market value, according to Sados.

The Czech presidency of the EU Council has officially confirmed that the EU member states' envoys have reached an agreement on a price cap for Russian oil.

On her part, the head of the European Commission, Ursula von der Leyen, said in a statement that the price cap for Russian seaborne oil, which was agreed upon by the European Union and G7 countries, will be adjustable, 

"Today, the European Union, the G7 and other global partners have agreed to introduce a global price cap on seaborne oil from Russia," she said. "It will be adjustable over time so that we can react to market developments."

According to White House National Security Council Spokesperson John Kirby, the US welcomes reports that the European Union has reached an agreement on imposing a price cap on Russian oil. "We see the reports and it is welcome news that they're coming together towards a price cap," Kirby said during a conference call.

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The US welcomed the European Union's decision to join the G7 in imposing a $60-per-barrel price cap on Russian oil exports, saying it will slow the Kremlin's "war machine".

"It’s welcome news that they’re coming together towards a price cap," White House National Security Council spokesman John Kirby told reporters.

"We still believe that a price cap will help limit Vladimir Putin’s ability to profiteer off the oil market so that he can continue to fund a war machine that continues to kill innocent Ukrainians."

The price cap will come into full force by December 5, when all the bloc's nations will have reached a formal agreement on the level of the price cap.

Baltic nations have recently expressed opposition to the idea that a price cap should be set above $50 per barrel. They believe that the price remains too high and that could potentially fuel profits for Russia, thus harming Ukraine.