Benchmark futures jumped as much as 10% for a second day of gains. In the latest move to ensure supply, Germany said it will nationalize Uniper SE and avert a collapse of the energy sector with winter just days away.

G7 countries have also agreed to finalize a price cap for Russian crude. The US Treasury has indicated that three separate price caps will be introduced -- for crude, high-value refined products and low-value refined products.

Brent fell $1.17, or 1.3%, to $90.18, WTI dropped $1.14, or 1.3%, to $83.97.

Russia is still the biggest source of the trade bloc's shipped crude with more than 1.2 million b/d of imports landing in the region in early September, the data shows, little changed on the month.

Benchmark prices dropped as much as 8.8% on Monday, extending last week’s decline. Germany, the U.K. and others plan to spend billions to ease their reliance on Russian imports, rescue local energy companies, and cap prices to alleviate pressures on businesses and households.

With European energy prices at acute levels, there are huge risks that could destabilise the whole social, economic, and political fabric of Europe.

Gazprom produced 300.8 billion cubic meters of gas from January 1 through September 15, 2022. This is a decrease of 15.9 per cent (or 56.8 billion cubic meters) versus the same period of last year.

The US federal government’s effort to force the transition of the US energy economy from a mixed-fuel economy to an “all-electric everything” energy economy based on renewable electricity generation and storage is becoming a brutal and explicit combination of incentives and disincentives.

U.S. commercial crude oil inventories increased by 2.4 million barrels to 429.6 million barrels.

U.S. Rig Count is up 4 from last week to 763, Canada Rig Count is up 6 from last week to 211.