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From Stephanie Kelly
(Archyde.com) – It rose on Tuesday following a ceiling set by the Group of Seven for Russian seaborne oil prices came into force on Monday, in addition to the European Union’s ban on Russian crude imports by sea.
Crude futures rose 66 cents to 83.34 a barrel by 0108 GMT. West Texas Intermediate crude rose 70 cents to $77.63 a barrel.
Futures fell by more than 3 percent in the previous session, following US service sector data raised concerns that the Federal Reserve (the US central bank) may continue the path of tightening monetary policy.
The Russian oil price cap imposed by the Group of Seven comes as the West tries to restrict Moscow’s ability to finance its war in Ukraine, but Russia has said it will not abide by the measure even if it is forced to cut production.
The price cap, to be imposed by the Group of Seven countries, the European Union and Australia, comes in addition to the European Union’s ban on Russian crude imports by sea and similar pledges from the United States, Canada, Japan and Britain.
Meanwhile, the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, in what is known as the OPEC + grouping, agreed on Sunday to stick to their agreement in October to cut production by two million barrels per day starting in November.
The Group of Seven countries and Australia agreed last week to put a cap of $60 a barrel on Russian oil transported by sea.
In China, more cities eased COVID-19 restrictions over the weekend, fueling optimism regarding increased demand from the world’s largest oil importer.
Business and manufacturing in China, the world’s second-largest economy, have been hit this year by strict measures to curb the spread of the coronavirus.
(Prepared by Ali Khafaji for the Arabic Bulletin)