Oil prices eased Monday morning in Asia as investors took profits after the previous surge. But global supply concerns are surfacing as the EU prepares to implement its ban on Russian oil imports.
- Brent crude was down 64 cents, or 0.6%, at $110.91 a barrel.
- WTI crude futures fell 60 cents, or 0.5%, to $109.89 a barrel.
Kazuhiko Saito, chief analyst at Fujitomi Securities Co Ltd said, “Oil markets are expected to gain this week as a pending ban by the European Union on Russian oil will further tighten global supplies of crude and fuels.”
The EU still intends to gradually introduce sanctions against Russian oil this month. However, there were concerns about supply in Eastern Europe.
Meanwhile, U.S. gasoline futures hit another record high on Monday. The decline in inventories is raising concerns about supply.
On the supply side, U.S. energy companies increased oil and gas rig counts for the eighth consecutive week in the week ended May 13. This is due to high prices and pressure from the federal government prompting oil drillers to return to the wells.
OPEC+ and OPEC and Russia have reviewed previously agreed plans to increase production due to low investment in oil fields by some OPEC members.
OPEC’s latest monthly report shows that production rose by 153,000 barrels per day in April to 28.65 million bpd. This is below the 254,000 barrels per day increase that OPEC had promised.
The Spot Market is Open
Monday, May 16, 2022
|Crude Oil |