A view shows tankers in Nakhodka Bay near the crude oil terminal Kozmino outside the port city of Nakhodka, Russia June 13, 2022. (Photo: REUTERS)

Officials said no price range has been decided yet, however one person familiar with the process said the cap will be determined in line with the historical average of 63-64 USD a barrel - a level that could form a natural upper limit.

The Biden administration has seen the price cap as a way to cut oil revenues for Russia, a major source of its funding for its military operation in Ukraine, while keeping Russian oil flowing and avoiding price spikes.

The actual price will be set in coming weeks ahead of the planned Dec. 5 launch of a European embargo on Russian oil and associated restrictions on transportation and insurance of seaborne oil.