Russia could cut its oil production by 5-7% in early 2023 in response to price capsthe RIA news agency reported on Friday, citing Deputy Prime Minister Alexander Novak.
Russian Baltic oil exports could fall 20% in December from the previous monthafter the European Union and the G7 countries imposed sanctions and a price cap on Russian crude from December 5, according to traders and Reuters calculations.
“The possible cut from Russia could be giving bulls more fuel,” said Eli Tesfaye, senior market strategist at RJO Futures. “If global demand continues at its current pace, that cut could have a significant impact and we could end up in the $80 range.”
The demand for transport fuels increases during the Christmas and New Year holidays. However, A massive winter storm was raging across a wide swath of the United States, forcing thousands of flights to be cancelled.
The storm could also disrupt motorists’ travel plans, though Tesfaye said storm-related disruptions are expected to be temporary.
Some of the largest U.S. refineries closed on Friday due to extreme cold, knocking out about a million barrels a day of refining capacity.
Trading volumes are lower due to the upcoming holidays, making the market more susceptible to exaggerated price swings.
Source: Ambito
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