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: 14.05.2025 Expectation: 1650 pips
Technical and fundamental background supports AUDCAD
07 May 2025 88
Elena_Dorokhina
Elena_Dorokhina

Listed among the best MarketCheese authors
1st in the segment "Currencies"
Period: 08.05.2025 Expectation: 550 pips
EURUSD to drop to 1.13000
07 May 2025 62
Period: 13.05.2025 Expectation: 240 pips
Brent crude price rebound to continue up to 65
07 May 2025 78
Period: 14.05.2025 Expectation: 1000 pips
Buying GBPUSD amid trade talks and weaker dollar with target at 1.344
07 May 2025 39
Period: 12.05.2025 Expectation: 1500 pips
USDJPY rebound fades ahead of Fed meeting
06 May 2025 74
Period: 30.05.2025 Expectation: 975 pips
Natural gas maintains upside potential within megaphone pattern
06 May 2025 79
Go to forecasts