Oil is recovering temporarily but is still under pressure and
the US Treasury is seeking to implement the maximum price for Russian oil.
Oil managed to end last week’s trading, recording a rise of about 3%,
which brings back to the market fears about high inflation, as oil rose to $86.1
per barrel, and Brent crude rose by about 3.67% to record $92.42 per barrel.
TOPIC’S
The most important factors controlling oil prices
The US Treasury seeks to implement a cap on the price of Russian oil
The most important factors controlling oil prices
There were several events that strongly pressured oil prices, most notably:
– The slight decrease in the oil production lines in “OPEC +”,
in addition to the threat of Russian President “Putin” to cut
off gas supplies to Europe permanently if Europe sets a price ceiling,
which is a matter that preoccupies Europe a lot and
that the loss of these supplies will exacerbate the crisis and
also Oil costs will rise in the coming months.
– With the increase in interest rates by about 75 basis points
by the European Center, it also affected prices.
– In addition to the closures, tightening and application of “zero covid” in China,
including the recent decision regarding the population of Chengdu,
which has a population of 21 million people, which is the complete closure currently.
artical name Oil is recovering temporarily but is still under pressure
Peak altitudes.
In March of this year, oil prices fell very significantly after recording their highest level
at 147 dollars at the time of the Russian invasion of Ukraine,
and this came amid fears and the pressure it caused regarding the recession and demand.
The Group of Seven was seeking to solve the energy crisis it suffers from because of Russia,
and one of the solutions that were proposed by an American
official is to set a specific price ceiling at the fair market value.
artical name Oil is recovering temporarily but is still under pressure
The US Treasury seeks to implement a cap on the price of Russian oil
In a strong move and despite Russia’s warnings,
the US Treasury issued a decision on Friday regarding
the implementation of the proposed maximum price for Russian oil,
and it is expected that this decision will be implemented on December 5
for crude oil and February 5, 2023 for petroleum products.
On Friday, US Deputy Treasury Secretary Wali Ademo confirmed
that the European Union and the Group of Seven countries account for 90%
of global freight insurance, and that they seek to make the matter straightforward
for companies in order to comply with the maximum price of oil.
The Assistant Secretary of the US Treasury, “Ben Harris,” added,
“We urgently need the cooperation of the private sector in order to facilitate this matter.”
artical name Oil is recovering temporarily but is still under pressure