Oil prices rose about 1% on Tuesday (22), after the largest exporter, Saudi Arabia, said that OPEC + maintained production cuts and could take other measures to balance the market.
However, prices pared gains late in the session after Bloomberg reported that the European Union had weakened its latest sanctions proposal for a price cap on Russian oil exports, delaying its full implementation and easing key shipping provisions.
The bloc has proposed adding a 45-day transition to the cap’s introduction, according to Bloomberg.
Brent crude was up $0.91, or 1%, to settle at $88.36. US Crude Oil (WTI) was up $0.91, or 1.1%, to hit $80.95.
A European Union ban on imports of Russian oil is due to start on Dec. 5, as is a G7 plan that will allow transport service providers to help export Russian oil, but only at forced low prices.
“The price cap is becoming a device that allows Western countries to keep Russian oil in the market,” said John Kilduff, partner at Again Capital LLC in New York. “The big crux of this market is whether or not we are going to lose significant amounts of crude and refined products from Russia, and that hasn’t happened yet.”
Prices received support after Saudi Energy Minister Prince Abdulaziz bin Salman was quoted yesterday by state news agency SPA as denying a Wall Street Journal report that saw prices fall by more than 5%, saying the Organization of the Petroleum Exporting Countries was considering increasing production.
The UAE, another major OPEC producer, has denied talking about changing the latest OPEC+ deal, while Kuwait has said no such talks have taken place. Algeria said an “unlikely” revision of the OPEC+ deal had not been discussed.
OPEC, Russia and other allies, known as OPEC+, meet on December 4.
(Reporting by Stephanie Kelly; additional reporting by Alex Lawler, Laura Sanicola and Isabel Kua)
Source: CNN Brasil
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