Oil Price Nears $85/Barrel Amid Fall In Russian Supply

Oil price rose on Friday, following hopes that Russian crude oil supplies will fall.

Gatekeepers News reports that Brent crude was up by 2.63 percent to $83.71 a barrel while US West Texas Intermediate (WTI) crude rose 2.09 percent to $79.11 a barrel.

According to traders and Reuters calculations, Russia’s Baltic oil exports could drop by 20 percent in December from the previous month after the European Union and a group of seven (G7) nations imposed sanctions and a price cap on Russian crude from December 5.

Russian state-owned news agency, RIA, while quoting Deputy Prime Minister, Alexander Novak on Friday, said Russia may slash its oil output by 5 percent to 7 percent in early 2023 as it responds to price caps on its crude and oil products by halting sales to the countries which support them.

Oando analyst, Edward Moya told Reuters that oil prices are rising as energy traders watch Moscow’s reaction to Russia’s oil price cap.

Moya said, “Crude prices are higher as energy traders focus on Moscow’s response to the price cap put on Russian oil and not so much the thousands of flight cancellations that will disrupt holiday travel.”

Reuters said expectations that Russia will shrink oil supplies have helped offset concerns that US fuel demand growth could take a hit as looming Arctic storms threaten travel during the holiday season.