BRENT crude oil futures fell 1.5% on Friday – EU agrees on Russian oil price cap

Crude oil futures closed lower on Friday (Dec. 2) as investors watched the OPEC and OPEC+ meeting on Sunday (Dec. 4) ahead of the G7 meeting. Both the European Union (EU) and Australia plan to introduce caps on Russian oil prices on Monday, December 5.

  • WTI crude futures fell $1.24, or 1.5%, to $79.98 a barrel, but are up nearly 4.9% for the week.
  • BRENT crude futures fell $1.31, or 1.5%, to close at $85.57 a barrel, but were up 2.2% for the week.

Oil prices fell on Friday following news reports that the EU may reach an agreement on Russian oil prices at $60 per barrel and continuously review such measures to keep the price ceiling at least 5% below the market price average. The measure is aimed at reducing Russian revenues to support the war in Ukraine. However, it must not affect global oil supplies to the point of causing a shortage.

The Group of Seven industrialized nations (G7), along with the EU and Australia, will introduce a cap on Russian oil prices on Dec. 5 that will apply to Russian oil production shipped by tanker, excluding oil transported by oil pipelines.

Investors in the oil sector will be keeping an eye on the OPEC+ meeting on Sunday, December 4, where the oil production policy for December will be set.

“A further cut in production cannot be ruled out. Failure to do so risks sparking another selling frenzy,” said Stephen Brennock, an analyst at PVM Oil.

The Spot Market is Closed

Saturday, December 3, 2022

Energy
Updated at
USD
Price

Change

%Change
Crude Oil
09.20

80.34

-0.88

-1.08%

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