Connect with us

Hi, what are you looking for?

Finance

Oil Prices Rose Sharply on Monday Amidst Supply Tightening and Rate Hike Concerns

Oil prices rose (Photo: Reuters)

Oil Prices Rose Sharply on Monday Amidst Supply Tightening and Rate Hike Concerns

Oil climbs with tight supply back in focus

Oil prices rose on Monday due to concerns about tightening supply after Moscow issued a temporary ban on fuel exports. (Photo: CNBC)

Oil Prices Rose as Moscow’s Export Ban Sparks Supply Concerns

According to the WHTC article, oil prices rose on Monday due to Moscow’s temporary ban on fuel exports, raising concerns about supply constraints. Brent crude futures rose by 0.5% to $93.75 per barrel after a minor dip on Friday, while U.S. West Texas Intermediate (WTI) crude futures increased by 0.6% to $90.53 per barrel. The market’s optimism stemmed from Moscow’s ban on diesel and gasoline exports, which compounded supply constraints.

However, investors remained cautious due to potential future interest rate hikes signaled by the Federal Reserve, which could impact oil demand. Both Brent and WTI contracts faced challenges, ending a three-week winning streak. Oil prices had recently surged by over 10% in response to expectations of a significant supply deficit in the fourth quarter.

This was influenced by Saudi Arabia and Russia’s decision to extend supply cuts. Moscow’s export ban added to concerns about product availability, especially heating oil for the upcoming winter.

READ ALSO: Are You Afraid To Touch Your Individual Retirement Account? Here Is What You Need To Do

Oil Prices Rose Amidst Declining U.S. Oil Rig Count and Optimism Over Chinese Economic Recovery

In the U.S., the number of active oil rigs fell to 507, the lowest since February 2022, despite higher prices. Nevertheless, oil prices rose as the market also considered improved economic data expected from China, the world’s largest crude oil importer. China’s manufacturing sector was forecasted to return to expansion mode in September, with the purchasing manufacturing index expected to exceed 50 for the first time since March, according to Goldman Sachs analysts.

Additionally, China’s oil demand increased by 0.3 million barrels per day to 16.3 million barrels per day, partly due to a gradual recovery in jet fuel demand for international flights.

READ ALSO: Optimizing Social Security Benefits For The Average Social Security Beneficiary: Why Age 62 May Not Be The Best Option

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Finance

News on Inflation Impacting Global Markets: Dollar Weakens, Eurozone Falters, and Precious Metals Dive Global Market Reactions to News on Inflation: Dollar’s Slide and...

Evergreen

Texas is renowned for its sizable cities, cuisine, and cowboy way of life. Texas is the third most populous and second-largest state in the...

Evergreen

Find out which cities to avoid in this list of the most dangerous cities in Florida. If you are planning to visit or move...

Evergreen

Are you planning to visit, move, or travel to Georgia? Here is a list of some dangerous cities in Georgia that you might not...