© Archyde.com. An oil pump in a city near Paris – Photo from Archyde.com archive.
TOKYO (Archyde.com) – Oil prices fell on Thursday, hovering near a two-month low, as a proposed price ceiling by the Group of Seven nations on Russian oil was deemed higher than current trading levels, easing concerns regarding tight supplies.
The larger-than-expected rise in US gasoline inventories and the expansion of COVID-19 restrictions in China added to downward pressures.
Crude futures fell 21 cents, or 0.3 percent, to 85.20 a barrel by 0431 GMT, while US West Texas Intermediate crude futures fell 16 cents, or 0.2 percent, to $ 77.78 a barrel.
The two benchmarks fell more than 3 percent on Wednesday on news that the planned price ceiling for Russian oil might be higher than the current market level.
The Group of Seven is considering a ceiling for Russian seaborne oil at $65 to $70 a barrel, according to a European official, although EU governments have yet to agree on a price.
Traders said that some (TADAWUL:) Indian and Chinese refineries are paying prices below the proposed maximum level for Urals crude, Russia’s main export crude.
EU diplomats said EU governments would resume talks on price caps on Thursday or Friday.
Oil prices also came under pressure following the Energy Information Administration said on Wednesday that US gasoline and distillate inventories rose sharply last week. The increase eased some concerns regarding a tight market.
But inventories fell by 3.7 million barrels in the week ending November 18 to 431.7 million barrels, compared to analysts’ expectations in a Archyde.com poll for a decline of 1.1 million barrels.
Meanwhile, China on Wednesday recorded the highest number of daily COVID-19 cases since the start of the pandemic nearly three years ago. Local authorities have tightened restrictions to stem the outbreak, adding to investor concerns regarding the economy and fuel demand.
(Prepared by Ali Khafaji for the Arabic Bulletin)