Home / Markets / Commodities /  Brent falls below $85/bbl amid talks of price cap on Russian oil

NEW DELHI: Crude oil declined on Thursday amid talks of capping the price of Russian oil by the European Union (EU). According to news reports, EU officials have discussed setting the ceiling for Russian seaborne exports at $65 to $70 a barrel. More talks are scheduled for Thursday amid disagreements on details.

At around 0115pm, the Brent January contract on the Intercontinental Exchange traded at $84.81 a barrel, down 0.70% from previous close. West Texas Intermediate (WTI) on NYMEX fell 0.63% to $77.45 a barrel.

The decline follows an over 3% fall on Wednesday.

Rahul Kalantri, vice president for commodities with Mehta Equities Ltd., said, “Oil prices fell more than 3% on Wednesday, continuing a streak of volatile trading, as the Group of Seven (G7) nations considered a price cap on Russian oil above the current market level and as crude oil inventories in the United States built by more than analysts‘ expected."

He added that crude oil prices are expected to trade volatile with a negative bias in Thursday’s session.

Demand concerns from China and an increase in gasoline stocks in the US also weighed on prices.

The U.S. Energy Information Administration reported an inventory build-up of 3.1 million barrels of gasoline in the week ended 18 November, indicating tepid demand for the fuel. Crude oil stocks, however, fell 3.7 million barrels during the week.

Despite the volatility in international crude prices, domestic prices of petrol and diesel have remained unchanged for over seven months now. In the national capital, petrol is priced at 96.72 per litre and diesel is sold for 89.62 a litre.

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