International oil prices fell by nearly 2%, and Russia's move has long been priced in by the market

On Thursday (Dec.
29), international oil prices fell nearly 2% as U.
S.
crude inventories fell less than expected and the Arctic cold snap forced refinery facilities to shut down, curbing crude demand
.
And Russia's ban on oil exports to countries that comply with price caps could have limited
impact.
Russian Urals crude is currently trading at about $50 a barrel, below the price ceiling of $
60.

On Thursday (Dec.
29), international oil prices fell nearly 2% as U.
S.
crude inventories fell less than expected and the Arctic cold snap forced refinery facilities to shut down, curbing crude demand
.
And Russia's ban on oil exports to countries that comply with price caps could have limited
impact.

At 16:41 Beijing time, NYMEX crude oil futures fell 1.
96% to $77.
39 per barrel; ICE Brent crude futures fell 1.
92% to $82.
38 a barrel
.

Jun Rong Yeap, market strategist at IG, said: "Heading into 2023, oil prices have a chance to rebound, but it will still depend on whether market participants continue to weigh central bank tightening as a growth risk pricing
.
”

The oil market has also been hit
by expectations of future rate hikes in the United States as the Federal Reserve tries to curb rising inflation amid a tight labor market.
U.
S.
crude inventories fell by about 1.
3 million barrels in the week ended Dec.
23, a lower than expected decline of 1.
575 million barrels
, according to the latest data released by the American Petroleum Institute (API).

Pipeline operator TC Energy said it is working to restart the section of the
Keystone pipeline that shut down after a leak this month.
However, the Arctic cold snap has forced some refining facilities to shut down, curbing crude oil demand
.
Refineries continue to increase operations, but a partial recovery is expected to extend into January
.

Russian President Vladimir Putin's decision to ban exports of crude oil and petroleum products to countries that comply with Western price caps for five months from February 1 has brought some support
to the market.
But Germany said the ban was "meaningless" because the country has been working since spring to replace Russian oil and ensure security
of supply.

Prices are limited to December 5, requiring traders using Western services such as sea routes, insurance and financing to pay no more than $60 per barrel for sea freight of Russian oil
.
According to Finnish refiner Neste, Russian Urals crude is currently trading at about $
50 a barrel.

Sophie Lund-Yates, principal analyst at Hargreaves Lansdown, said: "To some extent, the export ban is already reflected in prices – it is not a new or unexpected strategy
for Russia to put pressure on countries that implement the price cap policy at any time.
”

Bill Weatherburn, commodities economist at Capital Economics, believes that since the market has been threatened by Russia for some time, the direct market impact will be limited
.
He also said that because the United States and Europe have banned the import of Russian crude by sea, the Urals crude is still trading below $
60.

Following Russia's invasion of Ukraine in February, European countries have been scrambling to find alternative sources of oil and gas, as well as new solutions to energy security
.
EU oil imports from Russia fell 10.
5 percentage points year-on-year in the third quarter of 2022 as it increased imports
from the United States, Norway, Saudi Arabia and Iraq.