Oil prices rise as supply uncertainty mounts | Inquirer Business

Oil prices rise as supply uncertainty mounts

/ 06:15 PM September 12, 2022

LONDON -Oil prices rose on Monday as Iranian nuclear talks appeared to hit obstacles and an embargo on Russian oil shipments loomed, with tight supply struggling to meet still robust demand.

Brent crude futures rose 92 cents, or 1 percent, to $93.76 a barrel by 0910 GMT. U.S. West Texas Intermediate crude was up 71 cents at $87.50 a barrel, or 0.8 percent.

Prices were little changed last week as gains from a nominal supply cut by the Organization of the Petroleum Exporting Countries and allies including Russia, a group known as OPEC+, were offset by lockdowns in China, the world’s top crude importer.

Article continues after this advertisement

France, Britain and Germany on Saturday said they had “serious doubts” about Iran’s intentions to revive a nuclear deal, in a development which might keep Iranian oil off the market and keep global supply tight,

FEATURED STORIES

Global oil prices may rebound towards the end of the year as supply is expected to tighten further when a European Union embargo on Russian oil take effect on Dec. 5.

The G7 will implement a price cap on Russian oil to limit Russia’s lucrative oil export revenue following its invasion of Ukraine in February, and plans to take measures to ensure that the oil could still flow to emerging nations.

Article continues after this advertisement

In more bearish news for markets, China’s oil demand could contract for the first time in two decades this year as Beijing’s zero-COVID policy keeps people at home during holidays and reduces fuel consumption.

Article continues after this advertisement

“The lingering presence of headwinds from China’s renewed virus restrictions and further moderation in global economic activities could still draw some reservations over a more sustained upside,” said Jun Rong Yeap, market strategist at IG.

Also, the European Central Bank and the Federal Reserve are prepared to increase interest rates further to tackle inflation, which could lift the value of U.S. dollar against currencies and make dollar-denominated oil more expensive for investors.

Your subscription could not be saved. Please try again.
Your subscription has been successful.

Subscribe to our daily newsletter

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.

TAGS: oil prices, Russian oil

Your subscription could not be saved. Please try again.
Your subscription has been successful.

Subscribe to our newsletter!

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.

© Copyright 1997-2024 INQUIRER.net | All Rights Reserved

This is an information message

We use cookies to enhance your experience. By continuing, you agree to our use of cookies. Learn more here.