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Oil prices rose about three dollars at the settlement on Friday, achieving gains for the second week in a row, after Moscow said it might cut crude production in response to the price ceiling imposed by the Group of Seven on Russian crude. Brent crude rose $2.94, or 3.6%, to settle at $83.92 a barrel. US West Texas Intermediate crude rose $2.07, or 2.7%, to settle at $79.56 a barrel.
Russia’s exports of Baltic oil are likely to decline by 20% in December compared to the previous month after the European Union and G7 countries imposed sanctions and a ceiling on Russian crude prices.
Alexander Novak, Russian Deputy Prime Minister, told state television on Friday that Russia may cut oil production by between 5 and 7 percent in early 2023 in response to the price cap imposed by Western countries on its crude oil and refined products.
Crude oil demand and production may also decrease over the next few days due to the shutdowns caused by a massive winter storm sweeping across a wide swath of the United States. Many of the largest US refineries have been closed due to the severe cold, while production operations have been halted in Texas and North Dakota.
And futures contracts for gasoline and low-sulfur diesel rose 5% in anticipation of lower refinery production and increased demand for heating fuel. (Reuters)
