The move aims to overcome resistance from some EU member states.
In June, the Commission had suggested lowering the G7 price cap from $60 to $45 per barrel under its 18th sanctions package against Russia over its full-scale invasion of Ukraine. The G7 cap, initially agreed in December 2022, was designed to restrict the Kremlin’s ability to fund its war.
The push to revise the cap followed a global decline in oil prices, rendering the existing $60 threshold largely obsolete, according to the report.
However, the United Kingdom and European Union failed to gain backing from U.S. President Donald Trump for the proposed reduction during the G7 leaders’ summit in Canada in June.
Oil prices briefly surged to nearly $80 per barrel during the 12-day war between Israel and Iran in June, before dropping back to around $60.
"Four EU sources said the Commission is developing a mechanism that would adjust the Russian oil price cap based on fluctuations in global oil prices," Reuters wrote. "It is still under review and envisions a more automated system to revise the cap in line with international crude benchmarks."
One source told Reuters the starting point would likely be slightly above $45, though the final figure has yet to be determined.
Ukrainian President Volodymyr Zelenskyy has urged the international community to impose a stricter price cap of $30 per barrel on Russian oil and to further isolate the aggressor state to help end the war and prevent future Kremlin-led attacks.
Earlier, the EU postponed lowering the cap to $45 due to the Israel-Iran conflict.