Oil rises as volumes of Russian export are expected to fall

An increase of oil prices was registered on Friday due to expected decline in crude exports from the Baltic region of Russia in the current month. This fact mitigated concerns that transport fuel demand might stop growing because of an upcoming Arctic storm in the United States.

As shown by traders’ forecasts and Reuters’ calculations, Russian Baltic oil exports might decrease by 20% in December in comparison to November. The forecasted fall is linked to sanctions and a price cap on Russian oil set by the European Union and G7 countries from December 5.

According to a statement made by analyst Edward Moya from OANDA, the growth of crude prices is directly influenced by a fact that Moscow's response to the price cap put on Russian oil turned out to be more important for energy traders than lots of flight cancellations disrupting holiday travel.

At the same time, Brent and WTI are expected to head for a second weekly gain, which is supported by probable renewal of oil demand in China. It’s worth mentioning that China is the world’s second oil consumer.

As said by Moya, this country is the most notable wildcard in the oil market, and market participants are still highly optimistic regarding its further reopening and subsequent demand growth.