West Texas Intermediate dropped toward $77 a barrel after losing almost 4% in the previous session. EU officials discussed setting the ceiling for Russian seaborne exports at $65 to $70 a barrel. Ambassadors are scheduled for more talks Thursday amid disagreements on the details.
There are mounting headwinds in the two largest economies, threatening energy demand. In the US, Federal Reserve economists briefed policymakers that the chances of a recession in the next year had risen to almost 50% as interest rates climb. In China, officials are pressing on with aggressive efforts to check the spread of Covid-19, ordering lockdowns and movement curbs.
Adding to the softening outlook, US gasoline inventories rose 3.06 million barrels last week, the largest build since July, government data show. Demand plunged by the most in nearly two months before the Thanksgiving break.
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