Oil prices were higher today as Russia announced a plan to cut output in response to Western sanctions and the EU price cap. Russia is saying they plan to reduce crude production by 500K bpd or 5% of their total output. Brent and WTI posted weekly gains of more than 8%. “Most analysts have already penciled in Russian production falling by 700,000-900,000 in 2023,” said Rebecca Babin, a senior energy trader at CIBC Private Wealth U.S. “The key for crude to break out of its current trading range is Chinese demand recovery.” Meanwhile, OPEC+ plans no further action after the Russian announcement. WTI traded up $1.66 or 2.1% to close at $79.72. Brent traded up 2.2% or $1.89 to close $86.39.

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