Oil prices on the global market continue to fall. On Friday, November 25, prices dropped another 2% amid the introduction of price caps on Russian oil and weak demand from China.
According to Reuters, Brent crude futures fell to $83.63 per barrel. Meanwhile, WTI crude oil futures fell even further—by 2.1%—and are now trading at $76.28 per barrel.
It is noted that oil prices have been falling for the third week in a row. By the end of the week, Brent crude had fallen 4.6%, while WTI had dropped 4.7%.
As a reminder, diplomats from the G7 and the EU are discussing a price cap on oil from the Russian Federation at $65–70 per barrel. In this regard, trading is expected to be cautious ahead of the “price cap” agreement, which is set to take effect on December 5. Back in May, representatives of European Union member states agreed to impose a ban on Russian oil exports. The new restrictions will apply to oil shipments from Russia by sea and are set to take effect on December 5.
In addition, in late June, the G7 proposed imposing price caps on Russian oil. According to European Commission President Ursula von der Leyen, this decision will reduce oil imports from Russia to EU countries by about 90% by the end of the year.
By the end of September, Moscow’s revenue from oil exports had fallen to $15.3 billion—the lowest figure for the current year. As early as October 5, there was talk in Russia of cutting oil production. Moscow has already lost 90% of the oil market in Europe.