Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Oil rises more than 2% as supply outages outweigh recession fears

Commodities Jul 01, 2022 03:30PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Sticker reads crude oil on the side of a storage tank in the Permian Basin in Mentone, Loving County, Texas, U.S. November 22, 2019. REUTERS/Angus Mordant/

By Laila Kearney

NEW YORK (Reuters) -Oil prices gained more than 2% on Friday as supply outages in Libya and expected shutdowns in Norway outweighed expectations that an economic slowdown could dent demand.

Brent crude futures settled at $111.63 a barrel, rising $2.60, or 2.4%. West Texas Intermediate crude (WTI) settled at $108.43 a barrel, gaining $2.67, or 2.5%.

WTI and Brent traded at about 70% and 77%, respectively, of the previous session's volumes ahead of the U.S. Fourth of July holiday.

For the week, Brent lost 1.3%, while WTI rose 0.8%. For June, both benchmarks had ended the month lower for the first time since November.

Prices rose on Friday despite the release of industry data showing U.S manufacturing activity slowed more than expected last month, adding to evidence that the country's economy was cooling as the Federal Reserve tightens monetary policy.

Still, low crude and fuel supplies supported the oil market even as equities slumped and the U.S. dollar, which typically has an inverse relationship with crude, rose.

"The ability of the complex to post a strong advance today in the face of significant U.S. dollar strength and a weak equity trade suggests some refocus on tight oil supplies," Jim Ritterbusch, president of Ritterbusch and Associates LLC, said in a note.

A planned strike among Norwegian oil and gas workers on July 5 could cut the country's overall petroleum output by around 8%, or around 320,000 barrels of oil equivalent per day, unless a last-minute agreement is found over wage demands, a Reuters calculation showed.

Libya's National Oil Corporation on Thursday declared force majeure at the Es Sider and Ras Lanuf ports, as well as the El Feel oilfield. Force majeure is still in effect at the ports of Brega and Zueitina, NOC said.

Production has seen a sharp decline, with daily exports ranging between 365,000 and 409,000 barrels per day, a decrease of 865,000 bpd compared with production in "normal circumstances", NOC said.

The U.S. oil rig count, an early indicator of future output, rose by one to 595 this week, its highest since March 2020, according to energy services firm Baker Hughes Co.

Even though the U.S. oil rig count has risen for a record 22 months through June, weekly increases have mostly been in single digits as many companies focus more on returning money to investors and paying down debt rather than boosting output.

Meanwhile, Ecuador's government and indigenous groups' leaders on Thursday reached an agreement to end more than two weeks of protests which had led to the shut-in of more than half of the country's pre-crisis 500,000-bpd oil output.

On Thursday, the OPEC+ group of producers, including Russia, agreed to stick to its output strategy after two days of meetings. However, the producer club avoided discussing policy from September onwards.

Previously, OPEC+ decided to increase output each month by 648,000 barrels per day (bpd) in July and August, up from a previous plan to add 432,000 bpd per month.

A Reuters survey found that OPEC pumped 28.52 million bpd in June, down 100,000 bpd from May's revised total. [OPEC/O]

U.S. President Joe Biden will make a three-stop trip to the Middle East in mid-July that includes a visit to Saudi Arabia, pushing energy policy into the spotlight as the United States and other countries face soaring fuel prices that are driving up inflation.

Biden said on Thursday he would not directly press Saudi Arabia to increase oil output to curb soaring prices when he sees the Saudi king and crown prince during a visit this month.

Oil rises more than 2% as supply outages outweigh recession fears
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (5)
Mark Jannetty
Mark Jannetty Jul 01, 2022 5:53PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
oil will be up until Biden gone. other article says he is going to block new offshore drilling. Biden flation ********middle class over and over
Samantha
Samantha Jul 01, 2022 5:53PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
It's questionable if more drilling is needed. The under reported issue is the refineries that were lost to bankruptcy during the prior administration when overcapacity exceeded demand.
Nitin Salunke
Nitin Salunke Jul 01, 2022 5:53PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
no. oil would go down upto $97
حسن فدایی
حسن فدایی Jul 01, 2022 5:46PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
کسشعر
Alan Rice
Alan Rice Jul 01, 2022 5:37PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
World verdict: We prefer moving on our butts to a blue planet.
Christopher Hand
Christopher Hand Jul 01, 2022 2:33PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Dont worry later tonight the headline will be oil down as recession fears outweigh supply tightness
FMGK Blue
FMGK Blue Jul 01, 2022 4:23AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Recession again Reuters? You like the R word... But so far... No R in sight
John Berry
John Berry Jul 01, 2022 4:23AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I agree. These media mongrels are trying to talk recession into existence. Ignorant AF
First Last
First Last Jul 01, 2022 4:23AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
This article doesn't mention recession.
Tom Scurlock
Tom Scurlock Jul 01, 2022 4:23AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
John Berry And Biden is trying to talk War in existence. Who has their finger on the button? I hope Bidrn doesn’t and I surely hope his handlers done.
Tor Bristig
Tor Bristig Jul 01, 2022 4:23AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
First Last look at the headline.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email