Oil Set for 3rd Weekly Fall

WTI crude futures traded around $78 per barrel in thin trading on Friday and were set to end the week more than 2% lower due largely to concerns about Chinese demand and reports of a high price cap by G7 nations on Russian oil that eased supply worries.

The US oil benchmark is down for the third consecutive week, as China continued to grapple with surging Covid cases, stoking fears that authorities would adopt wider movement restrictions that could hurt energy demand in the world’s top crude importer.

Meanwhile, markets evaluated the impact of the G7’s proposed price cap on Russian oil in the range of $65-70 per barrel which is higher than current prices for Urals, allaying fears that Russia would retaliate by cutting supply.

Still, investors remain cautious ahead of the European Union ban on Russian crude on Dec.

5, as well as an OPEC+ meeting on Dec.

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