Oil Up over Tight Global Supplies
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By Zhang Mengying
Investing.com – Oil was up on Friday morning in Asia on worries over tight global supplies.
Brent oil futures rose 0.51% to $105.19 by 12:18 AM ET (0418 GMT) and crude oil WTI futures edged up 0.18% to $102.90.
“With more rate hikes to come and the U.S. likely in a technical recession, top-side market ambitions could be quite limited,” Stephen Innes, managing director at SPI Asset Management, told Reuters.
“The only reason why oil is not lower is due to self (imposed) and official sanctions on Russian oil,” Innes added.
Bans on Russian oil and gas output have driven global energy prices, while other producers are not able to boost significantly to supplies.
“The sell-off in the commodity markets got a reprieve as traders shrugged off recession fears and turned their focus back to the undersupply issues,” CMC Markets analyst Tina Teng said in a note.
“However, the economic uncertainties remain with the inverted benchmark bond yields pointing to an unavoidable recession, which may continue to weigh on commodity prices.”
Global central banks are raising interest rates to tackle inflation, spurring fears that rising borrowing costs could reduce oil demand.
Data from U.S. Energy Information Administration (EIA) showed on Thursday that U.S. Crude Oil Inventories rose by 8.2 million barrels in the week ended July 1.
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Oil Up over Tight Global Supplies