Oil prices are falling sharply amid a broad stock market selloff, and as the European Union
softens some of its proposed sanctions on Russian crude.
West Texas Intermediate crude oil, the U.S. standard, dropped over $6 U.S. a barrel to settle at
$103.09 U.S. a barrel in New York trading. Brent crude oil, the international benchmark,
dropped $6.45 U.S. to settle at $105.94 U.S. per barrel.
The pullback in prices marked the biggest decline since March of this year and has been
prompted by news that the European Union is set to weaken its sanctions package on Russian
crude oil.
Media reports say that the European Union will drop a proposed ban on its vessels transporting
Russian crude oil to third countries but will retain a plan to prohibit insuring those shipments.
Over the weekend, leaders of the Group of Seven (G7) countries made a vow to ban crude
imports from Russia. But most nations cutting Russian purchases have so far stressed the need
for a slow and orderly transition.
At the same time, Saudi Arabia has cut its prices in a sign of flagging demand from top importer
China, and equity markets continue to retreat on concerns over how much the U.S. Federal
Reserve will have to boost interest rates to get inflation under control.
Crude oil has had a volatile year so far as Russia’s invasion of Ukraine upended global
commodity markets and lifted prices. Markets have also been roiled by the U.S. Federal
Reserve’s aggressive interest rate hikes, adding volatility to crude prices.
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