A maze of crude oil pipes and valves is pictured during a Department of Energy tour of the Strategic Petroleum Reserve in Freeport, Texas, June 9, 2016. REUTERS/Richard Carson
Sign up now for FREE unlimited access to Reuters.com
- IMF chief says she cannot rule out a recession
- Beijing increases COVID quarantine
- Federal minister expects EU embargo on Russian oil “within days”
- Coming Soon: `I Supply Report, 2030 GMT
LONDON (Reuters) – Oil edged higher on Tuesday, reversing earlier losses, as tight global supply and an expected pickup in demand during the US summer driving season offset worries about a possible recession and China’s COVID-19 lockdown.
In a move analysts say will further tighten the market, the European Union is moving closer to agreeing a ban on Russian oil imports. Such an embargo will probably be agreed “within days”, said the Federal Minister of Economics on Monday. Continue reading
Another source of support is US gasoline demand. Memorial Day weekend trips are expected to be the busiest in two years as more drivers take to the streets and shake off coronavirus lockdowns despite high pump prices. Continue reading
Sign up now for FREE unlimited access to Reuters.com
“The market is quite challenging right now, but one thing is clear, it’s still extremely tight and this pressure will keep prices high,” said Craig Erlam, an analyst at brokerage firm OANDA.
“Just not quite as much as without the recession warnings and Chinese COVID cases.”
Brent crude was up 34 cents, or 0.3%, to $113.76 a barrel by 1325 GMT. US West Texas Intermediate (WTI) crude fell 13 cents, or 0.1%, to $110.16.
Oil has risen sharply this year, with Brent hitting $139 in March, its highest since 2008 after Russia’s invasion of Ukraine heightened supply concerns.
Nonetheless, concerns over threats to the global economy – a key theme at this week’s meeting in Davos – were behind Tuesday’s price declines. Continue reading
“Global economic growth is declining sharply,” said Tamas Varga of broker PVM.
Beijing is stepping up quarantine efforts to end its outbreak, while Shanghai is due to lift its lockdown in just over a week. Continue reading
The American Petroleum Institute’s weekly inventory report will be in focus at 2030 GMT for on-demand reading. Analysts expect lower gasoline and crude stockpiles.
Sign up now for FREE unlimited access to Reuters.com
Reporting by Alex Lawler Additional reporting by Yuka Obayashi and Isabel Kua Editing by David Goodman
Our standards: The Thomson Reuters Trust Principles.
Comments are closed.