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Oil prices are hovering near their lowest levels in two months

Oil prices fell today, Thursday, to approach their lowest levels in two months, as the Group of Seven countries’ proposed ceiling for Russian oil was seen as higher than current trading levels, which eased tensions. concerns about limited supplies.

The larger-than-expected increase in US gasoline inventories and the expansion of COVID-19 restrictions in China added to the downward pressures.

THE future crude oil fell 21 cents, or 0.3%, to $85.20 a barrel by 04:31 GMT, while future on US West Texas Intermediate crude fell 16 cents, or 0.2%, to $77.78 a barrel.

Both benchmarks fell more than 3% on Wednesday on news that the expected price high for Russian oil could be higher than the current market level.

The Group of Seven is taking in consider a ceiling for Russian oil transported via seas at $65 to $70 a barrel, according to a European official, though EU governments have yet to agree on a price.

Traders said some Indian and Chinese refineries were paying prices below the proposed price cap for Urals, Russia’s main export.

EU diplomats said EU governments would resume talks on price caps later on Thursday or Friday.

Oil prices also came under pressure after the Energy Information Administration said on Wednesday that US inventories of gasoline and distillates rose sharply last week.

The hike eased some concerns about a tight market.

However, crude inventories fell by 3.7 million barrels in the week ending Nov. 18 to 431.7 million barrels, compared with analyst expectations. in a Reuters poll, for a drop of 1.1 million barrels.

Meanwhile, yesterday, Wednesday, China recorded the highest number of daily cases of “Covid-19” since the pandemic began nearly three years ago.

Local authorities tightened restrictions to stem the outbreak, raising investor concerns about the economy and fuel demand.

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