Oil prices edged higher on Tuesday after the G7 price cap on Russian marine oil came into force on Monday on top of an EU ban on Russian crude imports by sea.
Brent crude futures LCOc1 were up 66 cents at $83.34 a barrel by 0108 GMT. West Texas Intermediate crude (WTI) CLc1 rose 70 cents to $77.63 a barrel.
Futures fell more than 3% in the previous session after data from the US services sector raised concerns that the Federal Reserve could continue down its aggressive policy tightening path.
The Group of Seven price cap comes as the West tries to limit Moscow’s ability to finance its war in Ukraine, but Russia has said it will not abide by the measure even if it has to cut production. Lie down
The price cap, to be implemented by G7 nations, the European Union and Australia, comes on top of an EU ban on Russian crude imports by sea and similar pledges by the United States, Canada, Japan and Britain.
Meanwhile, the Organization of the Petroleum Exporting Countries and its allies, together called OPEC+, agreed on Sunday to stick to their October plan to cut output by 2 million barrels per day (bpd) starting in November. .
Group of Seven (G7) countries and Australia last week agreed a $60 a barrel price cap on offshore Russian oil.
In China, more cities eased COVID restrictions over the weekend, raising optimism for rising demand in the world’s top oil importer.
Business and manufacturing activity in China, the world’s second-largest economy, has been hit this year by strict measures to contain the spread of the coronavirus.