Oil closes higher, with G7 performance against Russia on the radar

Oil futures contracts recorded gains on Monday (27). News from the G7 was on the radar, especially the possibility that the group could act to set a maximum price for Russian oil.

The G7 even renewed commitments to push for more clean energy to help control global warming. In addition, investors followed other movements with the potential to influence the supply and demand of the sector.

WTI crude for August closed up 1.81% ($1.95) at $109.57 a barrel on the New York Mercantile Exchange (Nymex), and Brent for September was up $1.72 ($1.88) to $110.98 a barrel on the Intercontinental Exchange (ICE).

Contracts showed volatility during the session. According to a US government source, the G7 is negotiating a proposal, during a summit in Germany, to set a ceiling on import prices for Russian oil. The deal would be close, according to the source.

In a statement on Monday, the group reaffirmed that it will work to limit the use of fossil energy and move forward in renewable energies.

Commerzbank says that the G7 countries no longer buy oil from Russia and questions whether the group would have the power to impose such a price limit, given the fact that there is already a discount on the market for Russian oil, in the current situation.

In a report to clients, the bank also highlights expectations for the meeting of the Organization of Petroleum Exporting and Allied Countries (OPEC+), on Thursday. For Commerzbank, OPEC+ should maintain the plan already outlined for next month, with a gradual increase in supply.

According to Reuters, France is working to get Iran and Venezuela to return to the oil market in order to ease the Russian squeeze on energy supplies, which has pushed up global prices.