Oil hovers near 10-month lows amid European dispute on price ceilings

Oil prices fell in European trade on Thursday for another session, almost hitting 10-month lows amid mounting dispute between EU countries on price ceilings for Russian crude.

Such considerations overcame recent US data that showed a larger than expected inventory drawdown in crude stocks last week.

Global Prices

US crude fell 0.6% to $76.97 a barrel, with a session-high at $78.18, while Brent declined over 0.5% to $84.09 a barrel. 

US crude lost 4.5% on Wednesday, while Brent declined 4.4%, resuming the losses after a short hiatus.

European Dispute 

Talks among European countries on putting a price ceiling for Russian crude are hindered with government split on how to design the plan.

The executive branch of the EU suggested putting the ceiling at $65, with Poland and the Baltic countries considering it too generous. 

Other countries with large shipping industries like Greece and Malta refused to push prices below $70, which was the upper limit imposed by the EU earlier this week.

US Stocks 

The Energy Information Administration reported a tumble in US crude stocks by 3.7 million barrels to 431.7 million barrels, while analysts expected a drop of 2.5 million barrels.

Gasoline stocks rose 3.1 million barrels to 211 million barrels, while distillate stocks rose 1.7 million barrels to 109.1 million barrels.