Brent crude futures fell $2.23, or 2.7 percent, to settle at $79.94 a barrel, after rising to a session high of $84.20.
The lowest level during the session was $79.72, the lowest level since Jan. 11, according to Reuters.
US West Texas Intermediate crude closed down $2.49, or 3.3 percent, to $73.39, after moving in a range between $78 and $73.13, the lowest level since January 5.
Brent crude recorded a decline of 7.8 percent this week, while West Texas Intermediate crude fell 7.9 percent.
Job growth in the United States accelerated sharply in January amid continued labor market strength, but a slowdown in the pace of wage rises should once again give the Federal Reserve a breathing space in its battle to rein in inflation.
“The market can’t decide whether it should be worried about a recession or more concerned about the Fed being aggressive on interest rates,” said Phil Flynn, an analyst at Price Futures Group.
Meanwhile, investors are seeking more clarity on the imminent EU ban on Russian refined products.
Does Europe’s ban on Russian oil products affect global markets?
On the other hand, the Kremlin warned that the European embargo on Russian oil products will lead to more imbalances in global markets, indicating that it will take measures to respond to the European embargo.
In response to a question about Moscow’s position on the embargo imposed on Russian oil products by European countries, Kremlin spokesman Dmitry Peskov told reporters: “This will of course lead to more imbalance in global energy markets.”
Peskov added: “We evaluate that (ban) negatively, we have already talked about this .. but it is natural that we take measures to preserve our interests against the risks that arise in this regard,” according to the Russian news agency Novosti.
He pointed out that Russia is taking measures to defend its national interests, and said: “It is natural that we take measures to protect our interests from the risks that arise in this regard.”
Sanctions on Russian oil:
- On December 5, 2022, Western sanctions on Russian oil entered into force, as the European Union stopped purchasing Russian oil by sea.
- On February 5, similar measures will be applied to Russian oil products.
- The G7 countries, Australia and the European Union imposed a ceiling on the Russian barrel price at $60.
- It is forbidden to transport or provide insurance services for shipments whose price exceeds this level.
For its part, Moscow responded to setting a ceiling on the price of its barrel by banning the supply of oil to parties with which the contracts concluded, directly or indirectly, stipulate the use of the price-setting mechanism, and the ban began to be implemented as of February 2023.
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