Oil Prices Rise as Cap on Russian Crude Kicks In

Oil rebounded on Tuesday after plunging by more than 3% in the previous session, as the implementation of sanctions on Russian seaborne crude oil eased concerns about oversupply while the relaxing of China's Covid curbs bolstered the demand outlook.
Brent crude futures had gained 85 cents to $83.53 a barrel. West Texas Intermediate crude rose 68 cents to $77.62 a barrel, Money.usnews.com reported.
Crude futures on Monday recorded their biggest daily drop in two weeks, after US service sector data raised worries that the Federal Reserve could continue its aggressive policy tightening path.
The Group of Seven set a top price of $60 a barrel on Russian crude, aiming to limit Moscow's ability to finance its war in Ukraine, but Russia has said it will not abide by the measure even if it has to cut production.
The price cap, to be enforced by the G7 nations, the European Union and Australia, comes on top of the EU's embargo on imports of Russian crude by sea and similar pledges by the United States, Canada, Japan and Britain.
While the market weighs the impact of sanctions on Russian supply, it was also watching a traffic jam of oil tankers off the coast of Turkey on Monday, with Ankara insisting on new proof of insurance for all vessels.