Oil slips after Russia decides on export ban

Oil drilling rigs

Oil prices declined slightly today, Dec. 28, as investors studied the potential fallout Russia’s ban on crude exports to buyers who are committed to the price ceiling set by the G7 countries.

The ban imposed by Russia on crude exports is scheduled to start on Feb. 1, and will continue until at least July 2023.

On the other hand, oil refineries on the Texas Gulf Coast began to increase production, after low temperatures forced them to stop last week.

Oil prices received support from expectations of an increase in fuel demand in China as it moves towards reopening its borders next month after three years of strict restrictions on movement and business to counter the spread of COVID-19.

In terms of trading, international benchmark Brent crude fell 0.44% to $83.96 a barrel, at 9:01 am Makkah time. West Texas Intermediate (WTI) crude declined 0.25% to reach $79.33 a barrel.