Oil falls amid uncertainty around supply & demand

World oil prices continued to decline on November 23 afternoon, Report informs referring to the auction data.

Markets continue to assess the prospects for oil supplies in anticipation of decisions to introduce a price cap for this raw material from Russia, and investors are paying attention to the prospects for demand.

The price of January futures for Brent crude fell by 1.04% to $87.44 per barrel, January futures for WTI oil declined by 0.93% to $80.2.

Investors also continue to assess the risks of a global recession, which may threaten global demand for this type of raw material. World central banks are raising their key rates amid high inflation, in December the largest regulators may continue raising them.

In addition, the release of weekly data on US oil inventories is expected. Later on November 23, the Department of Energy will announce a change in commercial oil reserves in the country for the week to November 18. According to analysts, there will be a decline by 1 million barrels.

10:28

World oil prices slightly decreased, as the market is waiting for the introduction of a price cap for raw materials from Russia, Report informs referring to the auction data.

The price of January futures for Brent crude fell by 0.26% to $88.13 per barrel, January futures for WTI oil dropped by 0.22% to $80.77.

Finance ministers of the G7 countries in September confirmed their intention to impose price restrictions on Russian oil as part of the expansion of sanctions. It is planned that the price limit will be introduced on December 5 for oil and on February 5, 2023 for oil products.

It was earlier reported that later on November 23, the G7 countries intend to announce the level the price cap for Russian oil will be set at. Some experts believe that it may be within $50-$60 per barrel.