Oil fell this week as the prospect of a global economic slowdown weighed heavily on the demand outlook.

West Texas Intermediate futures fell 6.7% for the week amid tighter monetary policy and further anti-COVID-19 shutdowns in China, as traders shrugged off executives’ announcement of the G7 of their intention to cap the price of Russian crude in retaliation to Russian President Vladimir Putin. aggression in Ukraine.

West Texas Intermediate crude for October delivery closed Friday up 0.3% at $86.87, while Brent crude for October delivery was up 0.71% at $93.02, down 7.53% compared to the previous week.

The G7 decision is largely symbolic “as the Russians are proving capable of circumventing restrictions already imposed by G7 countries and achieving record export volume in August despite sanctions,” the distributor’s analysts wrote. of TACenergy wholesale fuel in a note to customers.

On Friday, prices briefly rebounded after the US State Department said Iran’s latest response to nuclear deal proposals was “not constructive”.

The talks are being watched closely by oil traders as any deal to ease sanctions could allow more Iranian crude to flow into markets.

Oil fell more than 20% in the three months to last month, wiping out all gains since Russia invaded Ukraine on Feb. 24.

Lower prices pose a challenge to OPEC and its allies, with ministers due to meet tomorrow to plan output policy. As OPEC watchers expect the group to maintain supplies, Saudi Energy Minister Prince Abdulaziz bin Salman raised the possibility of a production cut in remarks this week. last.

Widely watched time gaps, an indicator of market stress, have been volatile. Brent’s early spread – the difference between its two closest contracts – was US$1.21 a barrel in a discount, down from nearly US$2 a barrel at the end of last week and 0, US$63 two weeks ago.

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