Singapore, Sept. 19 (BNA): Oil prices jumped on Monday as a weak dollar and supply concerns ahead of the European Union’s ban on Russian oil in December eased fears of a global recession that could dampen fuel demand.
Brent crude futures rose 60 cents, or 0.7 percent, to $91.95 a barrel by 0330 GMT, after rising 0.5 percent on Friday. US West Texas Intermediate crude was at $85.50 a barrel, up 39 cents, or 0.5%. Next month’s contract expires on Tuesday.
Both contracts, which fell more than 1% last week on concerns that another rate hike by the Federal Reserve could slow global growth, were underpinned by a weak dollar that came from multi-year highs. A weak dollar makes dollar-denominated goods less expensive for holders of other currencies.
Analysts said further supply disruptions remain a risk, while the easing of COVID-19 restrictions in China may also provide some optimism.
China has begun easing COVID restrictions in the southwestern city of Chengdu of more than 21 million people, helping to allay concerns about demand in the world’s second-largest energy consumer. China’s exports of gasoline and diesel also rebounded, blunting rising domestic stocks, after Beijing issued new quotas.
Despite questions about the future of the global economy, the CEO of Kuwait Petroleum Corporation (KPC) said on Sunday that its customers are still ordering the same quantities unchanged.
The Gulf state currently produces more than 2.8 million barrels per day of oil, according to OPEC’s quota.
On the other hand, the Basra Oil Company said that the operations of loading and exporting oil from the Basra oil port returned to normal rates on Saturday, a day after it stopped due to the spill that has now been contained. Read more
In Nigeria, Shell’s 200,000 bpd deep-water storage and offloading vessel Bonga is scheduled for maintenance in October, a company spokesperson said on Sunday.
In a sign of more supplies from the United States, US energy companies added oil and natural gas rigs for the first time in three weeks last week.
Energy services firm Baker Hughes said Friday that the number of oil and gas rigs, an early indicator of future production, rose four to 763 in the week to September 16, the highest level since August.
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