New Delhi: Crude oil declined on Thursday amid talk of European Union (EU) capping Russian oil prices. According to news reports, EU officials have discussed setting a limit of $65 to $70 a barrel for Russian seaborne exports. Further talks are to be held on Thursday amid disagreement on details.
Around 0115 hrs, the Brent January contract on the Intercontinental Exchange traded at $84.81 a barrel, down 0.70% from the previous close. West Texas Intermediate (WTI) fell 0.63% to $77.45 a barrel on the NYMEX.
The decline comes after a drop of more than 3% on Wednesday.
"Oil prices fell over 3% on Wednesday, continuing a streak of volatile trade as the Group of Seven (G7) countries raised the price cap on Russian oil," said Rahul Kalantri, Vice President, Commodities, Mehta Equities Ltd. Agreed. Current market levels and crude inventories in the United States have built up more than analysts expected."
He said that crude oil prices are expected to trade volatile with a negative bias in Thursday's session.
Demand concerns from China and rise in US petrol inventories also kept pressure on the prices.
The US Energy Information Administration reported an inventory build-up of 3.1 million barrels of gasoline in the week ending Nov. 18, reflecting weak fuel demand. However, crude stocks fell by 3.7 million barrels during the week.
The domestic prices of petrol and diesel have remained unchanged for the last seven months despite fluctuations in international crude prices. Petrol costs ₹96.72 per liter and diesel costs ₹89.62 per liter in the national capital.
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