Oil Rises, Central Banks Discuss Hikes – 7 September, 2022

Oil prices managed to claw back some losses from the previous session as the potential for an energy standoff between European nations and Russia overshadowed fears of recession and rising inflation. Brent crude futures were up 0.3% or 25 cents to $88.25 per barrel, having dipped to their lowest since early February at. Losing the previous session. U.S. crude futures were 0.5% or 40 cents higher to $82.52 per barrel. Prices drew some support from Russian President Vladimir Putin issued a threat to halt the country’s oil and gas exports if price caps are imposed by European buyers. The European Union proposed capping Russian gas prices only hours later, raising the risk of rationing in some of the world’s richest countries this winter if Moscow carries out its threat. A number of central banks are also expected to begin new rounds of hikes to fight inflation.