London, Monday, 18 July 2022
On Monday, WTI crude futures increased by about 4% to above $101 per barrel, reversing earlier session losses as investors struggled with the persistent supply crunch and risk appetite returned to the markets.
Despite US President Biden's promise to raise oil production, Saudi ministers reaffirmed that policy decisions will be made in accordance with market dynamics and the outcomes of the OPEC+ meeting on August 3.
In other places, Libya said that all oil fields and ports were reopening and that after months of blackouts, electrical production would increase. Due to the yearly rains, demand for gasoline and diesel declined in the third-largest energy user in India during the first half of July.
The US oil benchmark fell by about 7% last week, continuing a downward trend that began in mid-June as aggressive rate hikes throughout the world and mounting concerns about a global recession devastated commodity markets.
The expanded Covid-19 lockdowns in China and western plans for a price ceiling on Russian oil continue to worry traders.
(Source: Trading Economics // Edit and reporting by: The Decision Maker – Finance and energy editors)