Oil falls amid expectation of price cap for crude from Russia

Oil prices fell slightly on November 24 morning amid talks on a price cap for Russian oil, Report informs referring to the auction data.

January Brent futures fell $0.29, or 0.34%, to $85.12 a barrel on the London ICE Futures Exchange. Futures for WTI fell in price on the New York Mercantile Exchange (NYMEX) by $0.21 or 0.27%, amounting to $77.73 per barrel.

According to experts, the US and its allied countries are planning to agree on a price cap for Russian oil at about $50-$60 per barrel.

It was expected that a decision could be made as early as November 23, but the EU countries have not yet managed to come to a common position. Thus, the European Commission proposed to set the price at $65 per barrel, but Poland and the Baltic countries considered it too high. This is while Greece and Malta, where maritime transportation is developed, suggest that it be at least $70.

In addition, prices are also influenced by data on oil reserves in large countries, including the United States. US commercial oil inventories fell by 3.69 million barrels last week, data from a weekly report from the country’s Department of Energy showed.