Oil slides 4pc on Russian oil price cap talks
Oil prices fell more than 4 per cent on Wednesday as the Group of Seven (G7) nations looked at a price cap on Russian oil above where it is currently trading and as gasoline inventories in the United States built by more than analysts’ expected. Brent futures for January delivery fell $3.67 to $84.69 a barrel, a 4.2pc loss, by 11:07 a.m. ET (16:07 GMT). US crude fell $3.56, or 4.4pc, to $77.39 per barrel. Both contracts had risen by over $1/bbl earlier in the session. US gasoline stocks rose by 3.1 million barrels, according to the Energy Information Administration. Analysts had estimated a build of 383,000 barrels. “The build in gasoline is kind of a shock,” said Phil Flynn, an analyst at Price Futures group. “The increase in gasoline supplies suggests that maybe we’re seeing demand weakening or that gasoline is going on the rack ahead of the holidays.” EIA data also showed a 3.7 million barrel draw in Crude inventories, compared with analysts’ expectations in a Reuters poll for a 1.1 million-barrel drop.