Oil price increase due to Russia’s decision to cut production

Oil prices rose more than 2 percent in trading today and were on track for a weekly gain as Russia said it plans to cut production for next month, Fars News Agency reported.

A barrel of Brent oil was sold at 86.32 dollars, an increase of 1 dollar and 82 cents, and a barrel of US crude oil was traded at 1 dollar and 66 cents at 79.72 dollars.

Both oil indices had increased by more than 2 dollars in the early hours of trading and are on the way to record an increase of more than 8% in their prices for the week.

Russian Deputy Prime Minister Alexander Novak said today that Russia plans to reduce its crude oil production by 500,000 barrels per day in March, which is about 5% of the country’s production.

The Group of 7 industrialized countries, the European Union and Australia agreed that if Russian sea oil shipments are purchased above 60 dollars per barrel, Western companies will not be allowed to provide them with insurance and shipping services.

The European Union also banned the purchase of Russian oil products and set a price ceiling for it.

The announcement of this news reversed the downward trend in oil prices on Thursday caused by weak data from China and fears of a recession in the United States.

At the same time, Goldman Sachs lowered its forecast for oil prices this year from $98 to $92 and for 2024 from $105 to $100 per barrel.

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