West intends to set a price cap on Russian oil exports International oil prices fell significantly on November 23

Due to the high ceiling of the price set by the G7 plan for Russian offshore oil exports, coupled with the significant increase in refined oil inventories in the United States last week, the price of international crude oil futures turned from rising to falling in the overnight market, and the morning of November 23 fluctuated lower, followed by a narrow consolidation, and international oil prices fell
significantly at the close.

Light crude futures for January 2023 delivery fell $3.
01, or 3.
72%,
to settle at $77.
94 a barrel on the New York Mercantile Exchange by the close of the day.
London Brent crude futures for January 2023 delivery fell $2.
95, or 3.
34%, to settle at $85.
41 a barrel
.

The G7, the European Union and Australia plan to impose price caps on Russian oil exports by sea starting December 5 to limit Russian oil sales revenue
while stabilizing market supply.

Reuters quoted an anonymous EU diplomat on the 23rd as saying that the G7 proposed to set the price ceiling of Russian oil exports at $65 to $70 per barrel, and EU member states are discussing
this.
At the same time, the price of Urals crude for deliveries in northwest Europe is about $62 to $63 per barrel, while Russian crude for Mediterranean deliveries is $67 to $68 per barrel
.

Phil Flynn, senior market analyst at Price Futures Group, said setting a price cap has never worked
.
Another problem is that the G7 plan sets a price ceiling higher
than the normal trading price of Russian crude.

According to data released by the US Energy Information Administration on the 23rd, the US commercial crude oil inventories last week were 431.
7 million barrels, down 3.
7 million barrels
from the previous month.
Over the same period, U.
S.
gasoline and distillate inventories increased by 3.
1 million barrels and 1.
7 million barrels, respectively, sequentially, while propane and propylene inventories increased by 1.
2 million barrels
.
U.
S.
commercial oil inventories, including commercial crude, refined products, propane and propylene, rose by 3.
3 million barrels
last week from the previous month.
The data also showed that the average crude oil processing volume of US refineries last week was 16.
4 million barrels per day, an increase of 258,000 barrels from the previous week; the average operating rate of US refineries last week was 93.
9%, up from 92.
9% the previous week; Last week, U.
S.
net crude oil imports averaged 2.
821 million barrels, a significant increase of 1.
124 million barrels
month-on-month.

Flynn said the month-on-month increase in U.
S.
gasoline inventories last week was somewhat alarming, and the increase in gasoline supply suggested that gasoline demand may be weakening
.
The rise in oil prices on November 22 was impressive, but it failed to break through
due to reduced trading volumes ahead of the holiday.

In addition, the OECD economic outlook report released on the 22nd said that the rise in energy prices has seriously damaged the global economy, if European natural gas stocks are insufficient, the situation will be worse, European and global economic growth will decline, prices will rise
.