24 November 2022 | Other

Oil declines amid easing supply-disruption fears

On Thursday, oil prices tumbled following an ease in fears of supply disruption. Investors’ sentiment recovered on the news that the Group of Seven nations (G7) agreed a plan to impose a high price cap on Russian oil. 

The rise in U.S. gasoline stocks also added to downward pressure. The recent data turned out to be greater-than-expected.

Brent and WTI oil prices fell by over 3% on Wednesday on the report that a price cap on Russian oil may be set above the current market price. 

As noted by a European official, G7 is discussing a price cap on Russian oil between $65 and $70 a barrel. 

According to the report of the Commonwealth Bank commodities analyst Vivek Dhar, the potential price cap on Russian seaborne oil exports exceeds market expectations. He believes that the G7 decision may result in easing concerns of supply disruption. 

Another factor that contributed to the decline in oil prices was the introduction of extra COVID restrictions in China on Wednesday. Such measures were taken to curb the spread of the disease. Such news is a cause for more concerns across investors  about the economy and demand for fuel.

Company MarketCheese
Period: 08.07.2025 Expectation: 3000 pips
Buying Bitcoin during consolidation before July growth wave with 110,000 target
Yesterday at 11:09 AM 28
Period: 07.07.2025 Expectation: 2000 pips
Renewed tensions between Musk and Trump weigh on Tesla shares
Yesterday at 08:33 AM 32
Period: 07.07.2025 Expectation: 1900 pips
SPX may retreat to 5,980 following all-time high
30 June 2025 41
Gold sell
Period: 04.07.2025 Expectation: 5000 pips
Gold's six-month uptrend is under threat as prices test 3250 level
30 June 2025 103
Period: 04.07.2025 Expectation: 750 pips
AUDCAD rises amid easing geopolitical tensions
27 June 2025 95
Period: 03.07.2025 Expectation: 800 pips
Weak dollar pushes GBPUSD to new highs
27 June 2025 74
Go to forecasts