Oil prices rise by regarding $3 at the settlement, following Moscow talked regarding the possibility of reducing crude production in response to the price ceiling imposed by the Group of Seven on Russian crude.
-
Oil rose $3 on supply concerns
Oil prices rose regarding $3 when settling on Friday, posting gains for the second week in a row, following Moscow said it might cut crude production in response to a price ceiling imposed by the Group of Seven on Russian crude.
Brent crude rose $2.94, or 3.6%, to settle at $83.92 a barrel.
US West Texas Intermediate crude rose $2.07, or 2.7%, to settle at $79.56 a barrel.
Russia’s exports of Baltic oil might drop 20% in December compared to the previous month following the European Union and Group of Seven countries imposed sanctions and capped Russian crude prices, according to dealers and Archyde.com calculations.
Russian Deputy Prime Minister said, Alexander Novak, that Russia may reduce oil production by between 5 and 7% in early 2023 in response to the price cap imposed by Western countries on its crude oil and refined products.
Novak announced that Russia Oil supplies will be banned For countries that comply with the price fixing decision. He also reminded that Russia is preparing a special decree that will be issued soon regarding Moscow’s response to the decision to impose a ceiling on the price of crude oil set by the G7 countries and the European Union.
Andyesterday thursday, Russian President Vladimir Putin announced that he will sign on Monday and Tuesday decree Regarding the measures to respond to the ceiling of oil prices,” explaining that this response “will be precautionary, because there is no clear harm to Russia from this ceiling, as we almost sell at these prices.”
Crude oil demand and production may decline over the next few days due to the shutdowns caused by a massive winter storm sweeping across a large swath of the United States. Many of the largest US refineries were closed due to the severe cold, while production operations were halted in Texas and North Dakota.
And futures contracts for gasoline and low-sulfur diesel rose 5% in anticipation of lower refinery production and increased demand for heating fuel.
