Brent crude has plunged 3.16 percent to $89.67 per barrel on Wednesday amid imminent recession across western countries.
Lifestyle Nigeria reports that the development comes after Vladimir Putin, Russian president, threatened to halt all oil and gas supplies if price caps are imposed on the country’s oil and gas exports.
“Will there be any political decisions that contradict the contracts? Yes, we just won’t fulfil them. We will not supply anything if it contradicts our interests,” Putin said.
“We will not supply gas, coal, heating oil — we will not supply anything.”
Shortly after Putin’s threat, the European Union (EU) proposed a price cap on Russian gas ahead of the energy ministers’ emergency meeting on Friday.
“We will propose a price cap on Russian gas… we must cut Russia’s revenues which Putin uses to finance this atrocious war in Ukraine,” Ursula von der Leyen, European Commission president, told reporters.
On the other hand, West Texas Intermediate (WTI) fell over 3 percent to $83.52 a barrel.