The G7 Response by Russia means that the global oil supply is getting tighter

The West Texas Intermediate crude (WTI) was up 5.46% last week. 

Saudi Arabian stocks rose on Sunday in response to the Tadawul All Share Index (TASI), inching 0.2% higher

The increase in prices is due to concerns about tightening oil supplies. Friday was Friday. Russia’s Deputy Prime Minister Alexander Novak told state televisionThe country could reduce its oil production by 5 to 7 percent in the early 2023.

The decision is taken in response to The Group of Seven (G7)’s price capThis month’s Russian exports. Reuters reported that export barrels must not exceed $60 to be shipped by G7 or EU tankers, insurance companies and credit institutions. The move by the group, comprised of European Union countries and Australia, aims to limit seaborne oil exports to restrict Russia’s capacity to finance its war in Ukraine. 

The energy sector has enjoyed a strong performance this year compared to the broad stock market. 

In February, Russia invaded Ukraine, causing oil and gas shortages. 

These commodities are expected to remain in short supply. The conflict aside, companies in the sector aren’t spending enough capital expenditure. 

Although it is bad news for energy, it could also be good news for investors as they have a safe haven heading into the new Year. 

Even though energy stocks have had a strong run in the 2022, there could still be upside as demand is expected exceed supply, according to Insider.

Source link

[Denial of responsibility! is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – at The content will be deleted within 24 hours.]