Oil rose on Friday after Russia threatened to cut output, compounded by disruptions from a winter storm in the United States.
The price of the barrel of Brentin contracts to February, rose 3.63% to $83.92 in London, while in New York the barrel of WTIalso to February, increased 2.67% to 79.56 Dollars.
During the day both types of crude reached their highest prices in almost three weeks.
The rise, according to Edward Moya of the Oanda brokerage firm, responded to comments by Russian Deputy Prime Minister Alexander Novak who warned that Russia could cut production by between 500,000 and 700,000 barrels a day from the beginning of next year.
The message was interpreted as a response to the entry into force in December of a European embargo on Russian crude and the application of a cap on the sale prices of Russian crude outside Europe.
Russian President Vladimir Putin “is a master manipulator and knows that the price of crude oil is a pain point for the West,” said John Kilduff of investment firm Again Capital.
However, reducing production can be delicate, according to the expert, and can even damage the facilities. These factors lead investors to relativize the Moscow announcements.
Traders were also watching the passage of winter storm Elliot across the United States, which has already disrupted Texas refineries.
“That puts pressure on refined product volumes” and “will help support prices,” according to Kilduff.
