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Oil Markets Remain in Slump on Price Cap News

OIL

Oil markets have maintained much of their sell off this morning after a price range for the Russian oil cap was reported in the $65/70bbl range. The markets were already trending lower on weak economic sentiment and further lockdown news out of China.

  • The EU is expected to announce its plans to set the price cap at that level later today if discussions progress as planned.
  • The market has been waiting on clarification of a price range over fears lower prices would pull volumes off the market. The proposed level is above the current market rate Russia is receiving after ~$20/bbl discounts for Urals is applied.
  • Brent JAN 23 down -2.4% at 86.27$/bbl
  • WTI JAN 23 down -2.1% at 79.28$/bbl

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