Crude oil rises after Russia threatens to halt oil exports

Crude oil futures closed higher on Thursday (Sept. 8) as investors speculated after oil prices fell to a 7-month low on Wednesday. Meanwhile, Russia is threatening to suspend oil and gas exports to the West.

  • WTI crude futures were up $1.6, or 2%, at $83.54 a barrel.
  • BRENT crude futures were up $1.15, or 1.3%, at $89.15 a barrel.

Russian President Vladimir Putin has said that Russia will completely cut off its energy supplies to the West if measures are taken to cap Russian oil prices.

“We will terminate our contracts with the West and we will end energy supply altogether if measures are taken against our interests. We will not send gas, oil, coal or any kind of energy,”

Putin said at the Eastern Economic Forum in Vladivostok, Russia.

On September 2, G7 finance ministers agree on measures to cap Russian oil prices. This is intended to weaken Russia’s financial position so that it does not use the proceeds to support its war with Ukraine. The measure to cap Russian crude oil prices will take effect Dec. 5, 2022, and apply to petroleum products Feb. 5, 2023.

Speculative buying and news of Russia’s threat to suspend Western oil supplies helped fuel prices close in positive territory, overshadowing the negative. As shown in a report from the EIA, U.S. crude oil inventories rose by 8.8 million barrels last week. That was only 250,000 barrels more than analysts had expected.

The Spot Market is Open

Friday, September 9, 2022

Energy
Updated at
USD
Price

Change

%Change
Crude Oil
12.00

84.11

+0.57

+0.68%

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