Global energy firms are carefully developing new oil and gas projects—mostly outside the United States.
The Group of Seven nations (G7), Australia and the 27 European Union countries placed a price limit on Russian crude oil of $60 per barrel on Dec. 5. The cap allows non-EU countries to import seaborne Russian crude oil, but prohibits Western shipping and insurance companies from handling cargoes of the crude unless it is sold at or below that price. Most Russian oil currently trades below that level, with seaborne Urals crude quoted at $49.50 a barrel on a free-on-board basis from Primorsk on Tuesday, and at $47.83 FOB from Novorossiisk.
Oil prices climbed on Wednesday underpinned by a weaker dollar, which fell on signs of slowing inflation in the United States, easing fears that the world's largest oil user may face a recession because of further interest rate hikes. Brent crude futures gained 20 cents, or 0.2%, to $85.66 a barrel at 0128 GMT, while U.S. West Texas Intermediate (WTI) crude futures rose 34 cents, or 0.4%, to $79.21 a barrel, extending gains of about 1% in the previous session. Tamer rate hike expectations helped lower the dollar index, which supported oil prices as a weaker greenback makes the commodity cheaper for buyers holding other currencies.