The G7 agreed on a fixed price cap mechanism for Russian crude oil, and rising supply concerns supported oil prices

Concerns about the still tight oil market persisted after the G7 agreed on a fixed price cap mechanism for Russian crude, leading to a rise
in crude oil prices early Friday morning.

WTI crude oil rose nearly 5 percent as of 10:30 a.
m.
on Friday as the release of the Strategic Petroleum Reserve (SPR
) drew to a close.
From April this year to the present, SPR has released about 180 million barrels
.
Commercial crude inventories increased by 20 million to 30 million barrels
throughout the SPR release period.
With SPR releases a thing of the past, the market fears a significant reduction
in U.
S.
oil inventories.
At that time, WTI had risen to $
92.
37 a barrel.

The U.
S.
dollar also fell 1.
6 percent on Friday, supporting WTI crude prices as oil prices became noticeably more attractive
to holders of other currencies.

U.
S.
and its G7 allies sanctions on Russian oil are expected to cut Russian oil exports
at least to some extent.
Sanctions on Russian crude, the termination of SPR releases, the fall in the US dollar and expected OPEC+ production cuts, combined with the stubborn flattening of U.
S.
oil production, created the perfect storm
for high oil prices.

According to the U.
S.
Energy Information Administration (EIA), U.
S.
crude oil production has been essentially flat since mid-April, when it was 11.
9 million bpd
.

Warren Patterson, head of commodity strategy at ING, said on Friday: "The increasingly gloomy macroeconomic outlook has created some strong headwinds for the oil market, and if it were not for OPEC+'s announcement of production cuts in October, we would have traded at much
lower levels.
" ”

At 10:39 Beijing time on November 7, U.
S.
crude oil was continuously quoted at $91.
32 / barrel
.