Capping the price of Russian oil could 'disbalance' the market and send crude prices soaring, says top Moscow official

• Aa top Moscow official warned price caps on Russian oil could push crude prices higher.
• Russian Deputy Prime Minister Alexander Novak added that it would put the market out of balance.

Leaders from G7 weighed temporary price caps on Russian oil imports this week, though Russian Deputy Prime Minister Alexander Novak warned that a move like this would send crude prices higher.

"This is another attempt to intervene into the market mechanisms which may only lead to market's disbalance, deficit...which would lead to price increase," Novak said Thursday, according to a Reuters report.

Under the G7's potential plan, Europe would leverage its global influence in insurance and shipping services by limiting who can use them, based on whether Russian oil buyers observe the price caps.

Germany and other EU nations are cautious to move forward with the idea, officials told Reuters.

German Chancellor Olaf Scholz said the move could send a signal of unity, the Financial Times reported, but it would first need wide-spread buy-in from other nations.

Since Russia invaded Ukraine in February, Moscow has continued to rake in huge profits from its oil and gas exports, even as the US already banned Russian crude and the UK is aiming to phase out barrels by 2023.

On Thursday, OPEC+ confirmed its planned oil hikes for August, following up from its June 2 proposal of an increased output of 648,000 barrels per day for July and August.

That's up from its previous plan to ramp up output by 432,000 barrels per day, and the confirmation comes ahead of President Joe Biden's visit to Saudi Arabia.

Oil prices dipped Thursday, with Brent crude hovering just below $115 per barrel.