- Moscow avoids extreme measures such as a minimum price
- WTI poised for modest annual advance after a volatile 2022
According to Bloomberg article published on December 28, 2022, oil edged higher as investors weighed the fallout from a Russian ban on exports to buyers that adhere to a Group of Seven price cap.
West Texas Intermediate rose toward $80 a barrel after closing little changed on Tuesday. Moscow’s restrictions will begin Feb. 1 and last until at least July 2023, according to the decree. The guidelines avoid extreme measures — such as imposing a minimum price or prohibiting certain countries from purchases — that the market had feared would seriously disrupt trade.
Oil is heading for a modest gain in 2022 after a volatile year that saw prices surge following Russia’s invasion of Ukraine and then gradually pull back as fears of a global slowdown grew. More recently, China’s rapid unwinding of its strict Covid Zero policy and a resulting severe virus wave have hit a market that’s prone to sharp swings due to a lack of liquidity.
PRICES
- WTI for February delivery rose 0.3% to $79.74 a barrel as of 9:08 a.m. in Singapore.
- Brent for February settlement gained 0.3% to $84.60 a barrel.
In the US, refineries on the Texas Gulf Coast, including the country’s two biggest, started ramping up production after a freezing temperatures forced them to halt last week.
