Oil prices interact positively with Russia's approach to voluntary cuts

 

The statements of Russian Deputy Prime Minister Alexander Novak, that he is heading towards a voluntary production cut, confirmed his country’s intention of about half a million barrels per day next month, so that oil prices jumped in the energy markets, yesterday, and recorded increases that exceeded 2 percent.

Brent crude rose to $86.36, up 2.1 percent, while West Texas crude prices increased to $79.44, up about 1.8 percent, as of the time of preparing the report.

Novak said, yesterday (Friday), that Moscow intends to voluntarily reduce its oil production by 500 thousand barrels per day, or about 5 percent, in March, after the West applied a ceiling to Russian oil prices.

The Group of Seven, the European Union and Australia had agreed to ban the provision of marine insurance, financing and mediation services for Russian oil transported by sea, whose price exceeds $ 60 a barrel, as of December 5, within the framework of Western sanctions against Moscow. Because of its war in Ukraine. The European Union imposed a ban on purchases of Russian oil products, and set a price ceiling, as of February 5th.

In addition, the dollar rose broadly yesterday, with investors continuing to be reluctant to take risks ahead of US inflation data expected next week, as well as sentiment affected by fears of an economic slowdown and the Federal Reserve (US central bank) raising interest rates.

The dollar index, which measures the performance of the US currency against a basket of currencies, rose 0.155 percent to 103.34, after falling 0.24 percent in the previous session. The index is heading for gains for the second week in a row, which has not been recorded since last October.

The euro fell 0.15 percent to 1.072 dollars, heading for losses for the second week in a row, while the pound sterling fell in the latest trading 0.24 to 1.2093 dollars, one day before the announcement of GDP data for the fourth quarter.

The yen fell 0.12 percent to 131.74 per dollar. The Japanese government plans to present the candidates for the positions of the governor of the Bank of Japan and two deputy governors to parliament on February 14, Reuters reported Thursday.