The price cap that G7 countries are planning to put on purchases of Russian oil to punish Moscow for its war in Ukraine should be set above the marginal production cost of the country’s oil and take into consideration historical prices, a U.S. Treasury Department official told reporters on Friday.

The oil price cap should take out the risk premium that Russia introduced into the market by invading Ukraine, the official said. Source: Reuters (Reporting by David Lawder and Timothy Gardner in Washington and Florence Tan in Singapore; Editing by Christian Schmollinger)