In Friday's session, prices of crude oil turned higher, which has set a course for the commodity to register a weekly gain. The reason for this increase in crude oil prices is not without substance, though... The market is under the assumption that Russia will cut its oil supply somewhere around the new year.
Similarly, a winter storm is also expected to hit some parts of the USA, which could also affect the oil prices as a whole. Overall, the US crude futures turned up by 2.1% and reached the price of $79.14 per barrel. On the other hand, Brent's contracts also touched $83.27 per barrel after registering an increase of 2.8%.
Different benchmarks of crude oil are bullish and are all set to register yet another weekly gain. If this happens, then it would be the 2nd week in a row for a bullish crude oil.
It is also worth noting that TWI and Brent have rebounded after making their one-year low. This happened when fears of recession started to significantly affect the market's sentiment.
Earlier, the deputy prime minister of Russia gave an interview with a local TV in which he hinted towards reducing oil production. In total, oil production by going down by around 500,000 to 700,000 barrels per day. This news comes after the price cap was set on Russian oil by the G7 countries.
Even still, the market is waiting for a more profound response from Russia against the price cap policy. With the new price cap policy, Russia is forced to sell its oil only at $60/barrel or even lower.
Recently, the Russian president has also made it clear that he will be signing a decree that will outline the country's response against the western policy.
In addition, a major winter storm is expected to disrupt motorists and will also cause the cancellation of flights in the affected areas.