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Saturday, August 13, 2022

Oil prices surge backed by weak dollar and tight supplies

Oil prices rose on Monday, fueled by a weak dollar and tight supplies, fueled by concerns about a slowdown and the prospect of a broader COVID-19 lockdown in China denting fuel demand again.

Brent crude futures for September settlement rose $2.44, or 2.4 per cent, to $103.60 a barrel as of 0900 GMT, having risen 2.1 per cent on Friday.

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US West Texas Intermediate (WTI) crude futures for August delivery rose $2.17, or 2.2 percent, to $99.76, after rising 1.9 percent in the previous session.

The US dollar on Monday retreated from a multi-year high, supporting prices of commodities ranging from gold to oil. A weaker dollar makes dollar-denominated goods more
Affordable for holders of other currencies.

Brent and WTI both posted their biggest weekly declines in nearly a month last week on fears of a slowdown affecting oil demand.

Large-scale COVID-testing exercises continue in parts of China this week, raising concerns over oil demand from the world’s second-largest oil consumer.

However, oil supply remains tight. As expected, US President Joe Biden’s visit to Saudi Arabia failed to garner any pledge from OPEC’s top producer to boost oil supplies.

Biden wants Gulf oil producers to increase production to help lower oil prices and reduce inflation.

Global markets are focused this week on the resumption of Russian gas flow to Europe via the Nord Stream 1 pipeline, which is scheduled to end maintenance on July 21. Governments, markets and companies fear the shutdown could be extended because of the war in Ukraine. ,

“Brent crude will find support at the end of the week if Russia does not return gas to Germany after Nord Stream 1 maintenance,” said OANDA senior analyst Jeffrey Halley.

The loss of that gas to Germany, the world’s fourth-largest economy, would hit it hard and increase the risk of a recession.

Read more: Thousands of tourists stranded inside city: China lockdown tracker

World Nation News Desk
World Nation News Deskhttps://worldnationnews.com/
World Nation News is a digital news portal website. Which provides important and latest breaking news updates to our audience in an effective and efficient ways, like world’s top stories, entertainment, sports, technology and much more news.
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