Oil will rise due to variety of factors including Russia
2022.12.24 12:11
Oil will rise due to variety of factors including Russia
Budrigannews.com – Friday saw a rise in U.S. crude oil prices as Moscow suggested that it might reduce oil production to offset price caps on Russian crude imposed by the G7 and EU.
On the New York Mercantile Exchange, the price of a barrel increased by 2.7 percent to $79.56, while it increased by 3.6 percent to $83.92 on the London Intercontinental Exchange.
Russia might cut its oil yield by 500,000-700,000 barrels a day in mid 2023, Representative State head Alexander Novak purportedly said in a media interview on Friday.
According to Novak, Moscow would prefer to reduce production rather than sell crude in accordance with the price cap.
The European Union and the Group of Seven (G7) nations agreed earlier this month to set a $60 per barrel price limit for Russian seaborne crude oil. The price cap aims to keep global oil prices under control and reduce Russia’s income from oil sales, primarily to prevent it from funding its war against Ukraine.
However, many assert that Russia’s oil exports, for which China, India, and Turkey have offered willing buyers, have not been affected by the price cap.
Fears of a supply shortage were stoked by possible production cuts from Moscow, as China’s reopening appears to be expected to boost demand.
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According to S&P’s most recent forecast, China’s oil demand could reach 15.7 million barrels per day in 2023, approximately 700,000 more barrels than in 2022.
