June 5, 2023

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Oil rises $ 2 after G7 pledges new sanctions on Russia by Reuters

Oil rises $ 2 after G7 pledges new sanctions on Russia by Reuters

© Reuters. Wholesale oil refinery in France – Photo from Reuters Archive.

HOUSTON (Reuters) – Oil prices rose $ 2 a barrel on Monday, and the possibility of tightening supplies cast a shadow over the market, while a group of seven major nations pledged to tighten the noose around Russian President Vladimir Putin in Ukraine.

International benchmark deals for the close of the trading session rose $ 1.97 or 1.7 percent to settle at $ 115.9 a barrel, while US West Texas Intermediate crude deals rose $ 1.95 or 1.8 percent to $ 109.57. A barrel.

The group of seven pledged to stand with Ukraine “to the extent necessary” and proposed a cap on Russian oil prices as part of new sanctions affecting Russia’s finances.

A French presidential official said the international community should explore all options to facilitate tight energy supplies, including talks with producing countries such as Iran and Venezuela. US sanctions restrict crude oil exports from two OPEC members.

Both definitions fell for the second week in a row on Friday as rising interest rates in key economies sparked fears of a global recession.

The OPEC + group, which includes the Organization of the Petroleum Exporting Countries and other manufacturers, including Russia, is expected to stick to a plan to increase crude production by Thursday, August.

According to a report by Reuters, the group has reduced its oil market surplus forecast for 2022 from 1.4 million barrels per day in its previous estimate to one million barrels per day.

OPEC member Libya on Monday said it would suspend oil exports within 72 hours amid restrictions restricting production in the Gulf of Sirte.

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Added to supply concerns, Ecuador said it could halt oil production completely within 48 hours amid anti-government protests that killed at least six people.

Traders have also been waiting for news on when the oil reserve data will be released from the US government after its release was suspended last week due to problems with computer systems.

A preliminary study by Reuters shows that US reserves, distilleries and petrol are likely to fall last week.

(Produced by Waqti Al-Alfi for the Arabic Bulletin)