Sign Up for FREE Daily Energy News
Canadian Flag CDN NEWS  |  US Flag US NEWS  | TIMELY. FOCUSED. RELEVANT. FREE
  • Stay Connected
  • linkedin
  • twitter
  • facebook
  • youtube2
BREAKING NEWS:

Copper Tip Energy Services
Vista Projects
Copper Tip Energy
Vista Projects


Oil Up Slightly as EU Strives for Price-Cap Compromise


English Español 简体中文 हिन्दी Português
These translations are done via Google Translate
(Bloomberg) Oil pared a third weekly loss as the European Union weighed a higher-than-expected price cap on Russian crude and concerns about an economic slowdown threaten the demand outlook.Brent traded near $86 a barrel, putting the global benchmark on course for a small decline at the end of a volatile week, with trading volumes thin around a US holiday. European diplomats remain locked in talks over how strict the cap should be, highlighting disagreements between member states. Negotiations are set to resume Friday evening.

The cap talks come before an OPEC+ meeting early next month. Iraq and Saudi Arabia’s oil ministers met on Thursday and said the group could take further measures if required to achieve stability in the market.

Outlook for crude markets dim as demand concerns flare

Crude has declined this month, overturning the gains made in October after the Organization of Petroleum Exporting Countries and allies agreed to reduce production, with signs of challenges to demand accumulating. In China, the world’s largest oil importer, daily Covid infections hit a record this week, prompting tighter curbs. The Asian nation’s central bank on Friday boosted economic stimulus, announcing plans for a further cut in the amount of cash lenders must hold in reserve.

GLJ
All Business Marketing - Teledyne FLIR
EnergyNow Stand Out 2023 Promo
All Business Marketing - Teledyne FLIR
GLJ
EnergyNow Stand Out 2023 Promo

“Our balances point to slight oversupply until the end of 1Q,” Morgan Stanley analysts including Martijn Rats and Amy Sergeant said in a note to clients. “For now, the oil market is faced with macroeconomic headwinds.”

Prices:

  • Brent for January settlement added 0.6% to $85.87 a barrel at 8:47 a.m. in New York.
  • WTI for January delivery was at $78.90 a barrel, 1.2% above the close on Wednesday.
  • There was no settlement on Thursday due to Thanksgiving holiday in the US.
The price-cap plan forms part of the efforts by the EU and the Group of Seven to punish President Vladimir Putin for the invasion of Ukraine by reducing Moscow’s revenue, while at the same time allowing other states to continue imports. The introduction of a cap by western countries will “with high probability” have a negative effect on the energy market, Putin said.


Share This:



More News Articles


GET ENERGYNOW’S DAILY EMAIL FOR FREE