Oil climbed $3 on supply fears

Oil prices were up about $3 as they stabilized on Friday, posting gains for the second straight week, after Moscow said it could cut crude output in response to a Group of Seven-imposed price cap on crude Russian.

Brent crude oil climbed $2.94, or 3.6%, to $83.92 a barrel.

US West Texas Intermediate crude oil rose $2.07, or 2.7%, to $79.56 a barrel.

Russia’s Baltic oil exports could fall 20% in December from a month earlier after the European Union and Group of Seven countries imposed sanctions and capped Russian crude prices, according to calculations by retailers and Reuters.

The Russian Deputy Prime Minister said: Alexander Novak, that Russia could reduce oil production by between 5 and 7% in early 2023 in response to caps imposed by Western countries on its crude oil and refined products.

Novak announced that Russia Oil supplies will be banned For countries complying with the price fixing decision. He also recalled that Russia is preparing a special decree that will be issued shortly regarding Moscow’s response to the decision to impose a ceiling on the price of crude oil set by the G7 countries and the European Union.

ANDyesterday thursday, Russian President Vladimir Putin announced he will sign on Monday and Tuesday decree As for the measures to respond to the oil price ceiling”, explaining that this response “will be precautionary, because there is no clear damage to Russia from this ceiling, since we sell almost at these prices”.

Crude oil demand and production may decline in the coming days due to shutdowns caused by a massive winter storm that hit a large swath of the United States. Many of the largest US refineries have been shut down due to severe cold, while production operations have been halted in Texas and North Dakota.

And futures contracts for low-sulfur gasoline and diesel rose 5% in anticipation of lower refinery production and increased demand for heating fuel.