Oil on the rise, supply concerns resume

Oil prices were on the rise again on Monday, after experiencing several sessions at half mast last week, as fears of insufficient crude supply took over.

Around 09:20 GMT, a barrel of Brent from the North Sea, for delivery in September, gained 2.28% to 103.47 dollars. A barrel of American West Texas Intermediate (WTI), for delivery in August, took 2.04% to 99.58 dollars.

‘Oil prices are trading higher, trying to reverse the trend after last week’s sharp declines’ linked to ‘fears of a global recession and weaker demand’comments Victoria Scholar, analyst at Interactive Investor.

“Supply concerns have once again taken precedence over weakening demand anxiety in oil markets. says Susannah Streeter of Hargreaves Lansdown.

According to the analyst, “Uncertainty is growing about the impact of a potential Russian crude price cap amid the war in Ukraine, as Moscow prepares for its next offensive.”

At the end of June, the leaders of the G7 countries made a commitment to develop a “mechanism” to cap Russian oil prices globally in order to deprive Moscow of some of its energy windfall.

UBS analysts also note in a note that the progressive European embargo on Russian crude will lead to “a reduction of almost 3 million barrels per day of crude oil and petroleum products from Russia by the end of the year” and “will further tighten the market”.

Meanwhile, US President Joe Biden made his first official tour of the Middle East last week with a controversial visit to Saudi Arabia, hoping for a boost from the world’s largest crude oil exporter to bring down the high price of oil. oil.

“There are no signs of an imminent breakthrough in the US administration’s efforts to persuade the Gulf states to pump more oil,” says Susannah Streeter.

“I’m doing everything I can” to boost oil supply, Joe Biden said after bilateral meetings with Saudi leaders on Friday, adding results would not be seen “before two weeks”.

His national security adviser, Jake Sullivan, however, tempered expectations, telling reporters that any action “will be taken within the framework of OPEC+”, the Organization of the Petroleum Exporting Countries and their allies.

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