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Supply fears arising from Russian price cap ease analyst
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Coming up EIA supply report, 1530 GMT

LONDON, Dec 7 Reuters Oil weakened on Wednesday, with Brent crude falling close to its lowest this year, pressured by concern about recession and easing fears that a Western cap on Russian oil prices would significantly curb supply.

Warnings from big U.S. banks about a likely recession next year weighed, and supported the U.S. dollar. A stronger dollar makes oil more expensive for holders of other currencies and tends to dampen appetite for risk assets.

Brent crude fell 1.05, or 1.3, to 78.30 a barrel by 1020 GMT. It touched 77.74 earlier, the lowest since Jan. 3. U.S. crude was down 1.24 or 1.7 to 73.01 and touched 72.25, the lowest since late December.

There39;s still tons of uncertainty in the markets today, said Claudio Galimberti, senior vicepresident at Rystad Energy, adding crude production in Russia may not drop as much as expected earlier.

Brent settled below 80 on Tuesday for the only the second time in 2022 and has unwound the year39;s gains, which had lifted prices close to the alltime high of 147 in March after Russia invaded Ukraine.

Fears were easing that the price cap on Russian crude could cause a supply shock. Russia, the Vedomosti daily reported on Wednesday, is considering options including banning oil sales to some countries to…