Oil rose on Sept. 9 supported by real and threatened cuts to supply, although crude was set for a second weekly decline as aggressive interest rate hikes and China’s COVID-19 curbs weighed on the demand outlook.
Russian President Vladimir Putin has threatened to halt oil and gas exports to Europe if price caps are imposed and a small cut to OPEC+ oil output plans announced this week also supported prices.
Brent crude rose $13 or 1 to $90. by WTI crude climbed $1. 5, or 1 to $ .
“Over the coming months, the West will have to contend with the risk of losing Russian energy supplies and oil prices soaring,” said Stephen Brennock of oil broker PVM.
Brent is down sharply from a surge in March, close to its all-time high of $147, after Russia invaded Ukraine, pressured by worries about a recession and demand.
Despite the bounce, both crude benchmarks were headed for a weekly drop of more than 2%, with Brent this week hitting its lowest since January.
“I think the sell-off in oil prices may come to a pause for now due to a recovery in risk sentiment across the board,” said CMC Markets analyst Tina Teng, adding that a weaker dollar and falls in bond yields have offered support for a rebound in risk assets.
While supply tightness supports the market, the European Central Bank’s unprecedented rate hike of 75 basis points this week and more COVID-19 lockdowns in China have weighed.
The city of Chengdu extended a lockdown for most of its more than 21 million residents on Thursday while millions more in other parts of China were told to shun travel during upcoming holidays.
2022-12-05 - The expansion of Vertice’s portfolio will allow for more extensive services it can provide to its customers to handle growing re-frac market.
2022-12-05 - Through the appointment of Gabriel Mbaga Obiang Lima as president of OPEC, Equatorial Guinea and the continent of Africa will play a more prominent role in the global energy sphere.
2022-12-05 - Former Continental Airlines CEO Larry W. Kellner and former Raytheon International CEO John D. Harris II are slated to join Exxon Mobil's board of directors.
2022-12-05 - Today's featured Forty Under 40 honoree is Andrea Hepp, who serves as supermajor Shell's deal lead in Houston.
2022-12-02 - Petrobras' biggest budget share for 2023-2027 will go toward pre-salt efforts, which are expected to deliver 78% of the company’s production by the end of 2027.