Tuesday saw a little increase in oil prices following the Monday implementation of a G7 price ceiling on Russian seaborne oil, in addition to an EU embargo on the importation of Russian petroleum by sea.
By 1108 GMT, the price of Brent oil futures had increased 66 cents to $83.34 per barrel. WTI, the West Texas Intermediate, increased by 70 cents to $77.63 a barrel.
After U.S. service sector statistics sparked concerns that the Federal Reserve could continue its aggressive policy-tightening course, futures slid more than 3% in the previous session.
The Group of Seven price limitation is being implemented as the West attempts to restrict Moscow’s ability to finance its conflict in Ukraine, but Russia has stated that it would not comply with the rule even if it meant reducing output. View More
In addition to the EU’s ban on seaborne imports of Russian oil and comparable commitments by the United States, Canada, Japan, and Britain, the price ceiling will be implemented by the G7 countries, the European Union, and Australia.
Related: Oil goes up because US crude stocks are expected to fall, but worries about OPEC+ keep gains in check.
The Organization of Petroleum Exporting Countries (OPEC) and its allies, which include Russia, agreed on Sunday to stick to their October agreement to cut output by 2 million barrels per day (bpd) beginning in November.
Last week, the Group of Seven (G7) nations and Australia decided to restrict the price of seaborne Russian oil at $60 per barrel.
More Chinese cities relaxed COVID restrictions over the weekend, raising hopes for more demand in the biggest oil importer in the world.
China, the second-largest economy in the world, has seen a decline in business and manufacturing activity as a result of this year’s stringent coronavirus control efforts.
