Russia's crude has already been selling for around $60 a barrel, a deep discount from international benchmark Brent, which closed Friday at $85.42 per barrel.
Russia has threatened to refuse to sell its oil to anyone wanting to cap prices.
"Russia might also retaliate by leveraging its influence within OPEC+ to push for more production cuts down the road, thus exacerbating the global energy crisis," Campanella said.
The twin measures could have an uncertain effect on the price of oil as worries over lost supply through the boycott compete with fears about lower demand from a slowing global economy.
Gaurav Moda, India Energy Leader, EY, said falling and consistent crude prices are always good news for India, given the country continues to import nearly 80% of its oil requirements.
The emergency oil reserves usually kept for situations such as shutdowns at oil refineries was Biden's gambit to calm markets and shield the world's biggest economy from Ukraine war shocks.
At the interbank foreign exchange, the rupee opened at 82.68 against the greenback, then slipped further to 82.69, registering a fall of 39 paise over its previous close.
Oil producers are wary of a sudden collapse in prices if the global economy goes downhill faster than expected.
In a statement, OPEC+ said the decision was based on the uncertainty that surrounds the global economic and oil market outlooks.
A sizeable cut now looks on the cards, the question is whether it will be large enough to offset the demand destruction caused by the impending economic downturn.
India’s crude basket price averaged at $102.97 a barrel in April 2022, $109.51 in May, $116.01 in June, $105.49 in July, $97.40 in August and $91.23 per barrel in September so far.
"Look, we have concerns about the price of oil but we are a USD 2,000 per capita economy. When the price of oil is breaking our back and it's our big concern," Jaishankar said.
Jaishankar said the energy market is under stress due to the Ukraine war and that not just the pricing but the very availability of oil has become an issue.
Calling it an ‘absurd decision’ leading to chaos, Russia warned that countries imposing a price cap would be banned from receiving Russian oil.
The Modi government’s excuse that international crude oil prices are the reason for the increase in fuel prices has once again been proven wrong, remarked Rama Rao.
It finally settled flat at 79.84 against the US dollar. The dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.20 per cent to 108.38.
The world's best-known crude benchmark, Brent was trading at USD 94.91 per barrel after concerns of a global recession led to it slipping to a six-month low of USD 91.51 on the previous day.
Stocks on Wall Street bounced back and closed higher, extending the market’s recent winning ways as investors look ahead to several updates from retailers this week.
At the interbank foreign exchange, the rupee opened at 79.15 against the American dollar, then touched 78.94, registering a gain of 46 paise over the last close.
At the interbank foreign exchange, the rupee opened at 79.83 against the US dollar, then fell to 79.88 against the greenback, registering a decline of 10 paise over the last close.