Ukraine war: Oil prices rise as cap on Russian crude looms

Oil prices rose on Monday following an agreement by the G7 group of nations and its allies to cap the price of Russian oil at $60 (£49) a barrel.

Brent crude added around 1% to above $86 in Asia trading.

The move – which could come into force on Monday – raises Western pressure on Russia over the invasion of Ukraine.

It comes after oil producers’ group Opec+ agreed to stick to its policy to reduce production, amid slower global growth and higher interest rates.

“This decision by Opec+ to keep the quota where it is… is by itself an implicit sort of support to the oil market,” Kang Wu of S&P Global Commodity Insights told the BBC.

Opec+ is a group of 23 oil-exporting countries, including Russia, which meets regularly to decide how much crude oil to sell on the world market.

Traders are also reacting to strong US jobs data and the easing of Covid restrictions in some Chinese cities.

More cities in China, including Urumqi in the north west, have said they will loosen curbs after…

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This article was written by and originally published on www.bbc.co.uk