A pump hole on an oil field owned by the company Bashneft near the village of Nikolo-Berezovka, northwest of Ufa, Bashkortostan, Russia, in 2015. The G7 Group’s $60 price cap for oil shipped by sea Russia and the ban on Russian crude went into effect on Monday.
Serge Karpukhin | Reuters
Oil prices rallied as much as 2% on Monday after China signaled a broader easing of Covid-19 curbs, OPEC+ announced its decision not to change its oil production targets and cap Russia’s oil prices. effect.
Both futures are up more than 2% in early Asian hours after OPEC+ agrees to maintain current policy of reducing oil production 2 million barrels per day, or about 2% of world demand, from November to the end of next year.
Since then, both futures contracts have pared gains, with Brent oil Crude oil last traded at $86.12 a barrel and the US West Texas Intermediate futures at 80.53 USD/barrel.
Group of Seven hat price $60 on Russian seaborne oil and a ban on Russian crude went into effect on Monday. However, economists at National Australia Bank said that “it is not clear what impact this will have on Russian exports and how Russia will react.”
The Kremlin had previously threatened that it would no oil supply to countries that establish and confirm price limits.
“It was the right decision [for OPEC] To stay steady, especially if you don’t know how much Russian production will fall, if at all, after today, said Amrita Sen, head of research at energy consulting firm Energy Aspects. .
Another analyst said that the price cap is “irrelevant” and that oil prices mainly move according to other factors, such as the prospect of China’s reopening.
“There won’t be any impact unless Moscow carries out its threat and says ‘we’re not going to export in X quantity or whatever but so far we don’t think that will. happens,” Citi’s head of global commodities research, Edward Morse, told CNBC.
Oil prices are also supported by optimistic about China’s reopeningbased report signal that the world’s largest importer is easing Covid curbs.
“Markets are moving on optimism about China opening and concerns about the US dollar as the Fed may slow the pace of rate hikes.”
In early Asian time, Brent oil Crude oil futures rose as much as 2.37% to $87.60 per barrel, while US crude oil prices West Texas Intermediate Futures contracts traded up more than 2.27% to $81.84 a barrel.
“Brent crude oil prices edged higher this morning with more clarity presented from the meeting but in the long-term, prices appear to be fairly stable in the 80s range,” said IG Market Strategist Jun Rong Yeap. USD-100 USD”.
— Jihye Lee of CNBC contributed to this report
