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Oil declines as ban on Russian oil products looms

Oil prices dropped on Thursday as supply became more uncertain due to impending sanctions on Russian oil products and demand appeared to be weak despite signs of a global economic recovery due to an increase in U.S. fuel stocks.


By 12:40 GMT, West Texas Intermediate (WTI) U.S. crude futures had dropped 49 cents, or 0.6%, to $75.92, while Brent crude futures had dropped 67 cents, or 0.8%, to $82.17 a barrel.


After U.S. government data revealed a significant build in oil stocks, both benchmarks fell more than 3% overnight.


On February 5, a ban on Russian refined goods by the European Union is scheduled to go into effect, which could have an impact on the world’s supply.


After delaying a decision on Wednesday due to disagreements among member states, the EU countries will try to reach an agreement on a proposal from the European Commission to set price caps on Russian oil products on Friday, diplomats said.


Last week, the European Commission suggested that starting on February 5 the EU implement a price cap of $100 per barrel on premium Russian oil products like diesel and a cap of $45 per barrel on discounted products like fuel oil.


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