Oil falls 2% as investors weigh Russia sanctions, OPEC+ output plans

Core Viewpoint - Oil prices have declined approximately 2% as investors assess the implications of U.S. sanctions on major Russian oil companies and a potential OPEC+ output increase [1][2]. Group 1: Oil Price Movements - Brent crude futures fell by $1.36, or 2.1%, to $64.26 per barrel, while U.S. West Texas Intermediate crude futures decreased by $1.29, or 2%, to $60.02 [1]. - Last week, Brent and WTI experienced their largest weekly gains since June due to U.S. sanctions on Russia's oil sector [2]. Group 2: U.S. Sanctions Impact - The U.S. sanctions target major Russian oil companies Lukoil and Rosneft, with assurances that Rosneft's German operations are exempt from sanctions [2]. - Lukoil announced plans to sell its international assets, marking a significant response to Western sanctions following the Ukraine conflict [4]. Group 3: Market Reactions and Supply Considerations - Analysts suggest that the waiver for Germany may indicate flexibility in sanctions, reducing immediate supply concerns [3]. - The International Energy Agency noted that the impact of sanctions on oil-exporting countries would be limited due to existing surplus capacity [3]. Group 4: Indian Refiners and OPEC+ Actions - Indian refiners have paused new orders for Russian oil, awaiting further clarity from the government and suppliers [5]. - OPEC+ is considering a modest output increase in December, raising questions about the remaining spare capacity [5][6].