Crude oil surges $3 on Russia’s output-linked signals

On Friday, crude oil prices settled about $3 per barrel higher for a second straight week of gains following Moscow said it could reduce crude output in response to the G7 price cap on Russia’s energy exports.

Brent crude settled at $83.92, up by $2.94 or 3.6%, while U.S. West Texas Intermediate (WTI) crude settled at $79.56 a barrel, up $2.07, or 2.7%. Both benchmarks recorded their biggest weekly gains since October.

Russia may cut oil output by 5% to 7% in early 2023 as it responds to price caps, the RIA news agency cited Deputy Prime Minister Alexander Novak as saying on Friday.

Russia’s Baltic oil exports could fall by 20% in December from the previous month after the European Union and G7 nations have imposed sanctions and a price cap on Russian crude from Dec. 5, according to traders and Reuters calculations.