Weak dollar and supply concerns push oil prices higher

Oil prices rose in Asian trading Monday morning on a weaker dollar and supply concerns ahead of the EU’s December export ban on Russian oil.

  • Brent crude futures were up $1.15, or 1.3%, to $92.50 a barrel.
  • WTI crude futures were at $86.16 a barrel, up $1.05, or 1.2%.

Both contracts fell by more than 1% last week on fears that a further interest rate hike by the US Federal Reserve could slow global growth. This was supported by a weaker dollar. A weaker US dollar makes dollar-denominated commodities cheaper for holders of other currencies.

In China, the easing of restrictions on COVID-19 in Chengdu, a southwestern city with a population of more than 21 million, has eased concerns about demand in the second-largest economy. China’s gasoline and diesel exports also surged. As a result, stockpiles in China improved after Beijing issued new quotas.

Despite questions about the future of the global economy, a Kuwait Petroleum Corporation (KPC) executive said Sunday that customers would still demand the same volumes without changing.

The Gulf states currently produce more than 2.8 million barrels of oil per day under OPEC quotas.

Basrah Oil Company said oil exports from Iraq’s Basrah terminal returned to normal on Saturday after being suspended a day earlier due to an oil spill that is now under control.

In Nigeria, maintenance work on the Bonga deepwater tank and the 200,000 bpd Bonga tanker is scheduled for October.

In the U.S., energy services company Baker Hughes Co. announced Friday that the oil and gas rig count, a preliminary indicator of future production, rose four to 763 in the week ended Sept. 16, reaching an all-time high. The best figure since August

The Spot Market is Open

Monday, September 19, 2022

Energy
Updated at
USD
Price

Change

%Change
Crude Oil
15.00

83.86

-1.25

-1.47%

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