Crude oil prices stabilized on Monday, after dropping to their lowest points in nine months earlier this week as optimism about the EU’s ability to impose a price ceiling on Russian crude grew.
After falling as low as $84.51, the lowest level since January 14, Brent crude futures for November settlement were up 72 cents, or 0.8%, at $86.87 a barrel.
WTI crude for November delivery in the United States fell as low as $77.21, its lowest level since January 6, but it recently gained 86 cents, or 1.1%, to reach $79.60.
On Friday, both contracts had fallen by almost 5%.
The executive branch of the EU, the European Commission, met with member states over the weekend in an effort to reach an agreement on a set of punitive measures to penalize Russia for its invasion of Ukraine.
Bloomberg, however, stated that Cyprus and Hungary are among the states that have indicated opposition to the proposal. Also, the EU members are finding it difficult to come to an agreement on setting a price ceiling on Russian oil.
The strong monetary tightening by a number of central banks, led by the U.S. Federal Reserve, as they tried to manage inflation that was at historic highs at the expense of future growth, nevertheless, has negatively impacted the crude market sentiment and kept it weak.
After deciding at their previous meeting to modestly reduce output, attention is now focused on what the Organization of the Petroleum Exporting Countries (OPEC) and allies led by Russia, collectively known as OPEC+, will do when they meet on October 5.
However, OPEC+ is currently producing far less than its desired output, so a further decrease may not have a significant effect on supply.
According to data released this week, OPEC+ fell short of its goal by 3.58 million barrels per day in August, compared to July.
