Oil up as sanctions-weary Russia warns of output cut

By Sibel Morrow

ANKARA (AA) - Oil prices increased on Friday after Russia warned that it may cut output in the face of a price cap move by Western countries.

International benchmark Brent crude traded at $82.32 per barrel at 10.16 a.m. local time (0716GMT), up 2.52% from the closing price of $80.29 a barrel in the previous trading session.

American benchmark West Texas Intermediate (WTI) traded at $78.38 per barrel at the same time, a 1.14% gain after the previous session closed at $77.49 a barrel.

Price upticks came after Russian Deputy Prime Minister Alexander Novak warned that Russia would ban the supply of oil and petroleum products to countries that adhere to the price ceiling imposed by the Western countries.

Novak noted that his country may also reduce oil production in early 2023 by 500,000-700,000 barrels per day.

The G7 countries, EU, and Australia previously agreed to impose a $60 per barrel price ceiling on Russian seaborne oil exports as of Dec. 5 and for petroleum products as of Feb. 5.

On Thursday, Russian President Vladimir Putin warned that he intends to sign a decree early next week as precautionary measures against the EU price cap move.