The last-minute compromise came hours before a deadline that would have seen the price cap shoot up from its current level of $44.
Brussels was desperate to avoid that scenario as it seeks to restrict Moscow’s oil revenues despite a surge in prices since the Middle East war erupted.
The EU had wanted to change its rules for the oil price cap in a new sanctions package to maintain the current level for several more months.
But the new round of sanctions — the 21st the EU wants to impose on Russia since its 2022 invasion of Ukraine — has faced a rocky ride since it was proposed last month.
Various countries have objected to different parts and sought to water them down.
Despite days of negotiations, ambassador were unable to wrap up a deal.
Bulgaria said it managed to block putting Russian Orthodox Patriarch Kirill on the blacklist.
Diplomats said Germany objected to a ban on imports of Alaskan Pollock — a fish widely used in children’s meals — from Russia.
There has also been a push to tone down a plan to impose a sweeping visa ban on any Russians who took part in the war in Ukraine.
EU diplomats said there were aiming to agree a final deal by July 23.