Oil futures fell on Friday as investors awaited two events: a Sunday meeting of the Organization of the Petroleum Exporting Countries and its allies, and Monday’s launch of the European Union’s ban on imports. of Russian crude.
price action
-
West Texas Intermediate crude for delivery in January CL00,
+0.48% CL.1,
+0.48% CLF23,
+0.48%
was flat at $81.22 a barrel on the New York Mercantile Exchange. -
February Brent crude BRN00,
+0.39% BRNG23,
+0.39% ,
the global benchmark, rose 1 cent to $86.89 a barrel on ICE Futures Europe. -
Back to Nymex, January gasoline RBF23,
+0.20%
fell 0.2% to $2.338 a gallon, while January HOF23 heating oil,
+1.13%
rose 0.9% to $3.293 per gallon. -
January natural gas NGF23,
-0.61%
was down 1.3% at $6.648 per million British thermal units.
Market factors
Oil is on track for a weekly gain, supported in part by signs that China is starting to ease tough COVID restrictions.
Meanwhile, OPEC+ meets on Sunday. Many analysts expect the group to maintain production amid uncertainty over how an EU ban on Russian crude shipped by ship that begins Monday will affect the market.
“Given the many uncertainties in the market, however, it is unlikely to implement further measures this Sunday. After all, the EU oil embargo on crude oil (shipped by sea) from Russia will come into effect on Monday,” Barbara Lambrecht, commodity analyst at Commerzbank, said in a note.
It is also unclear what effect a separate price cap will have on Russian oil. European Union officials have proposed a cap of $60 a barrel, according to the Wall Street Journal.
