Oil sinks as EU discusses a softer Russian price cap at US$65-US$70
BNN Bloomberg
Oil tumbled as traders assessed a higher-than-expected price cap on Russian crude between US$65 and US$70 a barrel and a surprising build in U.S. products.
The European Union’s proposed range would be well above Russia’s cost of production and higher than some countries have been paying for its oil. As Russia is already selling its crude at discounts of US$20 a barrel in recent months, a high cap may have minimal impact on trading, keeping the nation’s supplies flowing into the global market.
West Texas Intermediate traded around US$77 a barrel as investors digested rising U.S. product stockpiles, accelerating a selloff in thin trading. Gasoline stockpiles rose by 3 million barrels, the largest build since July, with demand plunging by the most in nearly two months heading into the Thanksgiving holiday.
