LONDON—Oil prices fell on Thursday, hovering around two-month lows as the level of a proposed G7 cap on the price of Russian oil raised doubts about how much it would limit supply.
A bigger than expected build in U.S. gasoline inventories and widening COVID-19 controls in China also added downward pressure on crude prices.
Brent crude futures dipped 52 cents, or 0.6 percent, to $84.89 a barrel by 1219 GMT, while U.S. West Texas Intermediate (WTI) crude futures fell 15 cents, or 0.2 percent, to $77.79.
Both benchmarks plunged more than 3 percent on Wednesday.
The G7 group of nations is looking at a cap on Russian seaborne oil at $65-$70 a barrel, a European official said, though European Union governments have yet to agree on a price….