Oil closes lower, Brent holds above $86

Oil drilling rigs

Oil prices closed lower today, Aug. 14, snapping a seven-week winning streak, as the dollar rose to its highest level since July 6. Meanwhile, markets continued to assess the extent of China's economic recovery.

 Russia may have earned an additional $1.2 billion in Q2 203 by exploiting a loophole in the G7 oil price cap, Financial Times reported.

The report showed that Russian producers sold crude oil to India at prices below the maximum of $60 per barrel, but since freight costs were not included in the price cap, Russia was overcharging freight costs and, thus, generating more revenue.

 Separately, Nigerian crude oil exports from the Forcados terminal resumed on Aug. 13, after a month-long suspension of exports due to a possible leak, which cut production by 40,000 barrels per day, a Shell spokesman told Reuters.

 South Sudan's crude oil exports rose to their highest level in two years, at nearly 154,800 barrels per day, despite the war that broke out in April, which is twice the level in March at 77,400 barrels per day, Oil Price website reported.

On the other hand, investors are awaiting more data to discuss the extent of the recovery of the world’s second largest economy with the release of reports of industrial production in China and retail sales, in addition to some other indicators on Aug. 15.

Brent crude futures for October delivery fell 0.7%, or 60 cents, to close at $86.21 a barrel.

WTI crude for September delivery decreased by 0.8%, or 68 cents, to record $82.51 per barrel.