Oil futures ticked higher early Monday, as traders monitored talks by Group of Seven nations on additional moves aimed at targeting Russian crude.
West Texas Intermediate crude for August delivery
rose 39 cents, or 0.4%, to 108.01 a barrel on the New York Mercantile Exchange.
August Brent crude
the global benchmark, rose 67 cents, or 0.6%, to $113.79 a barrel on ICE Futures Europe, while the most actively traded September contract
rose 71 cents, or 0.7%, to $109.81 a barrel.
Back on Nymex, July gasoline
rose 0.4% to $3,90 a gallon, while July heating oil
fell 0.4% to $4.345 a gallon.
July natural gas
was down 1.4% at $6.131 per million British thermal units.
The G-7 was set to announce an agreement to pursue a price cap on Russian oil, aiming to curb Moscow’s energy revenues, a U.S. official said Monday. The move is part of a joint effort of support for Ukraine that includes raising tariffs on Russian goods and imposing new sanctions on hundreds of Russian officials and entities supporting the four month long war.
G-7 members however, are no longer buying oil from Russia intend to stop doing so by the end of the year, noted Carsten Fritsch, commodities analysts at Commerzbank, in a note.
“It is questionable whether countries like India and China will agree to cease purchasing Russian oil, especially as it is trading at a significant discount on the global market price. Instead, India is helping Russia to continue selling its oil despite the West’s sanctions,” he said.
“It will thus be interesting to see what happens when India’s Prime Minister Modi meets with the G7 leaders,” Fritsch said.
The Organization of the Petroleum Exporting Countries and their allies, known as OPEC+, are set to meet this week to review the market and decide on oil output levels.
Some members of the Organization of the Petroleum Exporting Countries, such as Saudi Arabia and the United Arab Emirates, have the ability to raise production. Overall, however, OPEC and its allies, together known as OPEC+, have failed to collectively reach their production targets.
Read: Don’t expect any surprises from OPEC+, even as recession worries weigh on oil prices
—The Associated Press contributed to this report.