Oil Rises as Saudi Arabia Refuses to Raise Production
Prices of crude oil made an upward adjustment on Monday after a previous decline below $100 per barrel amidst an energy crisis in the global economy.
West Texas Intermediate (WTI) crude oil rose back above the US$100 mark on Monday as Saudi Arabia declined to agree to raise production in response to a state visit from US President Joe Biden, though concerns over a potential recession and Chinese demand limited gains.
WTI crude oil for August delivery closed up US$5.01 to US$102.60 per barrel, MarketWatch reported. September Brent crude, the global benchmark, was last seen up US$4.34 to US$105.50 per barrel, while Western Canada Select was up US$1.85 to US$78.27 per barrel.
The rise comes as Biden ended a trip to Saudi Arabia without a commitment from its rulers to boost oil production to lower prices though the president said he expects the kingdom to take steps in coming weeks to increase output. READ: OPEC+ to Raise Oil Production 432,000 Bpd
“WTI and Brent crude oil futures trade higher after President Biden, as expected, left the Middle East with no promise of additional barrels to help suppress record high US gasoline prices. Instead, the Saudi ministers said that oil policy decisions will be taken based on market moves and within the framework of the OPEC+,” Saxo Bank noted.
Recession risks remain top of mind for traders, however, with the Federal Reserve expected to hike interest rates again when its policy committee meets next week, with some observers expecting a rise of up to a full percentage point as inflation runs at a 41-year high.
Chinese demand is also a market concern, as the country continues with a zero-Covid policy with mass testing and widespread lockdowns, with news over the weekend the country is seeing rising cases that could prompt another lockdown of parts of Shanghai. # Oil Rises as Saudi Arabia Refuses to Raise Production
