Oil rises to $1.56, but is heading for its third weekly decline

Crude oil prices rose on Friday amid low market liquidity, ending a week marked by concerns about Chinese demand and the debate over a Western price cap for the oil. russian oil.

At 10:24 GMT, crude oil futures Brent futures were up $1.29, or 1.5%, at $86.63 a barrel. West Texas Intermediate in the United States (WTI) earned $1.56, or 2%, to $79.50.

The WTI was not traded on Thursday due to the holiday of Thanksgiving Day in the United States and trading volumes remained low. Both contracts were headed for their third consecutive weekly decline, having hit 10-month lows this week.

China, the world’s biggest oil importer, reported on Friday a new daily record of infections by Covid-19as cities across the country continue to apply mobility measures and other brakes to control outbreaks.

This is starting to affect fuel demand, with traffic down and implied oil demand around 1m barrels a day below average, according to an ANZ note.

Meanwhile, diplomats from G7 The US and the European Union have been discussing a cap on the price of Russian oil between $65 and $70 per barrel, but no agreement has yet been reached.

The goal is to cap revenue to finance Moscow’s military offensive in Ukraine without disrupting global oil markets, but the proposed level is in line with what Asian buyers already pay.

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