The price of Brent crude oil is declining, with WTI settling near its lowest level in two months, affected by the proposed cap level by the Group of Seven countries for Russian oil prices and doubts regarding its impact on supply.
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The Energy Information Administration said that US gasoline and distillate inventories rose significantly last week
The price of Brent crude fell today, Thursday, while WTI settled near its lowest level in two months, as the ceiling level proposed by the Group of Seven countries for Russian oil prices raised doubts regarding the extent of its impact on supply.
The larger-than-expected rise in US gasoline inventories and the expansion of COVID-19 restrictions in China added to downward pressure on crude prices.
Brent crude futures fell 29 cents, or 0.3%, to $85.12 a barrel by 2015 GMT, while US West Texas Intermediate crude futures rose by two years to $77.96 a barrel.
Both benchmarks fell more than 3% on Wednesday, on the back of news that the planned cap on the price of Russian oil might be higher than the current market level.
European Union governments remained divided on Thursday over the level of the Russian oil price cap, whose imposition aims to limit Moscow’s ability to bear the costs of its war in Ukraine without causing a shock to global oil supplies.
Further talks are likely to take place on Friday in the event of convergence of positions.
The Group of Seven major countries is considering imposing A ceiling for Russian oil transported by sea At $65 to $70 a barrel, according to a European official, though EU governments have yet to agree on a price.
Two sources said, “Some Indian and Chinese refineries are paying prices between 25 to 30 dollars per barrel less than the proposed maximum level for Urals crude, Russia’s main export crude.”
Oil prices also came under pressure following the Energy Information Administration said, on Wednesday, that “US gasoline and distillate inventories rose significantly last week.”
The increase eased some concerns regarding a tight market.
However, crude oil 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, down 1.1 million barrels.
Meanwhile, on Wednesday, China recorded the largest number of deaths 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.