Oil prices rise despite disagreements over the Russian oil price ceiling
Oil prices rose in Asia on Friday, despite the low liquidity on the market after a week marked by worries about Chinese demand and Western negotiations over a price ceiling for Russian oil.
Brent crude oil futures rose 28 cents or 0.33% to $85.62 per barrel. From Wednesday’s finish of $78.43 a barrel, U.S. West Texas Intermediate (WTI) oil futures increased by 49 cents, or 0.49%. On Thursday, WTI was not settled due to Thanksgiving celebrations in the United States.
Despite decreasing concerns about shortages, both contracts were on track to fall by approximately 2 percent. This is for the third straight week. According to Stephen Innes, managing partner of SPI Asset Management, “oil is trading marginally higher in highly illiquid holiday-type trade. Probably receiving some support from lower global interest rates.”
Officials from the G7 and European Union have been discussing a restriction on Russian oil price. It’s between $65-$70 per barrel to avoid any disruptions in the world oil market.
Moscow’s potential for retaliation is reduced because the market considers (the price limits) excessively high. The president of Russia ,…