Brent Spikes to $96.77 on Tight Supply Outlook
Prices of crude oil rise rebound on Friday amidst a tight supply outlook as the third largest consumer –India- buys from Russia amidst sanctions. Both Russia and Iran are also working plan to ameliorate the impacts of sanctions on their oil supplies.
Oil group, the Organisation of Petroleum Exporting Countries and its allies (OPEC+) are expected to implement large production cuts among members in November 2022.
After the previous slowdown, Brent crude futures rose above $96 per barrel, erasing losses from the previous session and heading toward the highest levels in over three weeks, as a tightening supply outlook outweighed fears of a global economic slowdown.
Trading data also shows that West Texas Instrument (WTI) crude futures rose above $90 per barrel on Friday, erasing losses from the previous session and heading toward the highest levels in over three weeks, as a tightening supply outlook outweighed fears of a global economic slowdown.
Investors fretted about tight oil markets ahead of winter, with OPEC+ implementing large output cuts from this month, while the European Union ban on Russian oil is set to take effect in December.
Still, oil prices remain down nearly 30% since June as major central banks tighten further to combat inflation, raising the risk of a global recession. READ: Brent Price Rises to $92.88 on Supply Concern
With the Federal Reserve, European Central Bank and Bank of England all delivering a supersized 75 basis point rate hike in their latest policy meetings, analysts warned about the economic risks of rapid rate rises that could take a toll on energy demand.
A strong dollar also pressured oil prices, as well as lingering uncertainties surrounding China’s Covid situation. # Brent Spikes to $96.77 on Tight Supply Outlook