Skip to content


Content of the article

SINGAPORE — Oil prices edged higher amid a volatile trading session on Friday as supply uncertainty outweighed fears of a slowdown in demand due to slowing economic activity American.

Brent crude futures climbed 31 cents, or 0.3%, to $110.36 a barrel at 0630 GMT, while US West Texas Intermediate (WTI) crude futures rose by 59 cents, or 0.6%, to $104.86 a barrel.

“Looking at the respective futures curves, Brent and WTI are still significantly lagging, suggesting that the rapid oil supply remains as tight as ever,” said Jeffrey Halley, senior Asia-Pacific market analyst at OANDA.

Content of the article

“Growing recession fears appear to be prompting the elimination of heavy speculative longs in both contracts, even as real-world energy tensions are more real than ever,” Halley added.

Oil prices briefly climbed nearly $1 a barrel at the start of Asian trading before paring gains and eventually holding steady during Asia’s intraday hours on Friday.

For now, fears of slowing demand from interest rate hikes and slowing economic activity in the US have capped price gains.

Crude futures were in sell mode after U.S. manufacturing and services PMIs came in well below expectations, as well as weaker manufacturing data in Germany, partner Stephen Innes said. Director at SPI Asset Management.

Content of the article

“Under these conditions, rising crude oil prices will become super sensitive to any perceived or otherwise increased supply inflow,” Innes said, noting signs of Russian crude reaching the oil complex and mounting pressure on OPEC to increase production.

OPEC and allied producing nations, including Russia, will most likely stick to an accelerated production ramp-up plan in August in hopes of lowering crude prices and inflation as the President American Joe Biden plans to visit Saudi Arabia, sources said.

The group known as OPEC+ agreed at its last meeting on June 2 to increase production by 648,000 barrels per day in July, or 7% of global demand, and by the same amount in August, up compared to the original plan to add 432,000 barrels per day. one month out of three months until September.

However, the group has struggled to meet monthly increase targets due to underinvestment in oilfields by some OPEC members and, more recently, Russian production losses. (Reporting by Jeslyn Lerh in Singapore; Additional reporting by Laura Sanicola in Washington; Editing by Leslie Adler and Richard Pullin)

financialpost