Oil Prices Increase 2% As Russia Strikes Back At G7 Caps

Oil Prices Increase 2% as Russia Strikes Back at G7 Caps

(UrduPoint News / Sputnik - 11th February, 2023) ccording to Russian Finance Ministry data reported by Sputnik on January 19, Urals averaged $46.82 per barrel between December 15 and January 14, down almost 19% from $57.5 a month earlier.

G7, in response to the productions announced by Novak, said its price caps on Russian oil - set at $60 per barrel on crude, $100 on diesel and $45 on fuel oil and naphtha - "continues to meet its dual objectives."

The US Treasury Department has repeatedly said that it wants to limit Moscow's funding for the war in Ukraine, while ensuring Russian oil supplies reach markets that need them.

But the G7 also said any Russian production cuts will disproportionately hurt developing countries.

At Friday's settlement, New York-traded West Texas Intermediate (WTI) crude for March was up $1.66, or 2.1%, at $79.72 per barrel. The session high for the US crude benchmark was $80.33, its highest since January 30.

For the week, the US crude benchmark was up almost 9%, overwriting last week's 7.5% plunge.

London-traded Brent crude for March delivery finished Friday's regular session up $1.89, or 2.

2%, at $86.39, after a session peak at $86.89. The global crude benchmark was up 8% on the week, erasing last week's 7.5% decline.

Oil markets plunged last week on the back of recession fears and uncertainty in US interest rates direction after bumper job and wage gains among Americans in January threatened to bump up inflation.

Since this week began, however, crude prices have been rebounding on the premise that Chinese refiners would add exponentially to imports this month as the country returns from the long Lunar New Year break and into an environment free of COVID-19 restrictions which had previously hampered demand.

Chinese imports data supporting such a market run-up will likely not emerge for weeks. Meanwhile, latest available data showed the world's largest crude importer bought 10.98M bpd, or barrels per day, in January, down from December's 11.37 million bpd and November's 11.42 million bpd.

Running counter to the bullish sentiment were large builds across the board in crude, gasoline and distillate inventories in the Weekly Petroleum Status Report released by the US Energy Information Administration on Wednesday.