Crude oil futures ended sharply higher on Friday on rising expectations the EU sanctions will result in a substantial drop in Russian crude supply. The EU ban on Russian crude imports and a G7 price cap on Russian seaborn oil exports came into effect in the first week of this month. This is expected to result in Russia's Baltic oil exports falling by 20% in December. Meanwhile, Russia's deputy prime minister Alexander Novak has reportedly said Russia is likely to cut oil output by 5-7% in early 2023.
Benchmark crude oil futures for February delivery rose $2.07 or 2.67 percent at $79.56 a barrel on the New York Mercantile Exchange. Brent crude for February surged $3.56 or 4.4 percent to settle at $84.54 (Provisional) a barrel on London's Intercontinental Exchange.