Oil prices fall on Monday morning in Asia

Oil prices fell Monday morning in Asia as investors await this week’s meeting of OPEC and its allies.

  • Brent crude futures fell 63 cents, or 0.6%, to $103.34 a barrel.
  • WTI crude was at $97.87 a barrel, down 75 cents, or 0.7%.

Both contracts recovered more than $2 per barrel on Friday. However, both Brent and WTI lost ground for the second straight month for the first time since 2020 as rising inflation and interest rates stoke fears of a recession that could undermine fuel demand.

According to ANZ, fuel sales to UK motorists are now down, with gasoline demand remaining below the five-year average for this time of year.

OPEC and OPEC+ will meet on Wednesday to set production volumes for September.

OPEC+ is expected to raise output slightly in September at its Aug. 3 meeting, while some say output will likely remain at the same level.

The meeting comes after U.S. President Joe Biden visited Saudi Arabia last month.

“While President Biden’s visit to Saudi Arabia produced no immediate oil deliverables, we believe that the Kingdom will reciprocate by continuing to gradually increase output,” RBC Capital analyst Helima Croft said in a note.

Meanwhile, Baker Hughes reported that U.S. oil production continues to rise. The rig count rose by 11 in July, a record increase for the 23rd consecutive month.

The Spot Market is Open

Monday, August 1, 2022

Energy
Updated at
USD
Price

Change

%Change
Crude Oil
11.00

97.25

-1.37

-1.39%

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