Oil prices are rising amid a volatile climate as supply uncertainty offsets fears of lower demand than a slowdown in US economic activity.
Crude futures rose 31 cents, or 0.3 percent, to $ 110.36 a barrel, while West Texas Intermediate futures rose 59 cents, or 0.6 percent, to $ 104.86 a barrel.
“Looking at the respective futures curves of both Brent and WTI, they are still in a sharp decline, suggesting that direct oil supplies remain limited as never before,” said an OANDA oil analyst.
“Rising recession concerns seem to be driving heavy speculation out of both contracts, despite the fact that in the real world, energy tightening is more real than ever,” he added.
Oil prices rose $ 1 a barrel in Asian markets before gains fell and eventually remained stable.
For now, fears of a slowdown in demand stemming from rising interest rates and slower US economic activity are limiting price gains.
Crude futures went into sell mode as US manufacturing and services data fell short of expectations, along with a slowdown in the German manufacturing sector.
“Under these conditions, higher crude oil prices will become extremely volatile in any case of increased crude inflows,” the analysts added.
Source: Capital
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