Oil prices are rising, recovering much of last week’s losses as investors focused on limited crude and oil supplies instead of worries about a recession that reduces demand over time.
Brent futures rose 81 cents, or 0.7%, to $ 114.94 a barrel, while the West Texas Intermediate for July delivery rose to $ 111.19 a barrel, up $ 1.63, or 1.5%.
Supply concerns are likely to continue in the coming months as OPEC + countries, the world’s largest oil producers, may not have enough surplus capacity.
The summer travel season and the easing of restrictions on coronavirus will push demand to grow further, said Leona Liu, an analyst at DailyFX.
“Although fears of a recession are becoming more and more a problem for oil prices, it is estimated that we will have at least half a year before a real recession,” he added.
Analysts say prices have been bolstered by supply stress, following sanctions against Russia after the invasion of Ukraine, and questions about how Russian production could be reduced due to sanctions on equipment needed for production. .
“Supply concerns are unlikely to subside if there is no solution to the Russia-Ukraine war or if we do not see a sharp increase in supply from either the US or OPEC,” said a Kotak Securities analyst.
Source: Capital
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