Oil prices closed higher on Monday, shaking off expectations of weak demand as supply concerns grow as winter approaches.
The international benchmark of Brent crude oil contracts closed the trading session with a rise of $ 1.16, or 1.3 percent, to register at the close of $ 94.00 a barrel.
Contracts for US West Texas Intermediate crude rose 99 cents, or 1.1%, to stand at $ 87.78 a barrel.
US Department of Energy data showed Monday that crude oil inventories in emergency reserves fell 8.4 million barrels to 434.1 million barrels in the week through September 9, the lowest level since. ‘October 1984.
A further tightening of the global oil supply is expected when the EU embargo on Russian oil goes into effect on December 5.
The Group of Seven Major Industrialized Nations will implement a cap on the price of Russian oil to limit the export earnings of the country’s crude oil, seeking to punish Moscow for its invasion of Ukraine while taking measures to ensure that the flow of crude oil to the continuous developing countries.
But the US Treasury has warned that the cap could push US oil and gasoline prices to even higher levels this winter.
On Wednesday, the European Commission is expected to present a package of measures to help power companies cope with a liquidity crisis.
France, Britain and Germany said on Saturday they had “serious doubts” about Iran’s intentions to revive the 2015 nuclear deal. Failure to reinstate the deal will keep Iranian crude off the market and with limited global supply.
Chinese oil demand could contract for the first time in two decades this year, as Beijing’s zero-Covid policy to completely eradicate the Corona virus keeps people indoors during the holidays and cuts fuel consumption.
“Continuing headwinds due to renewed virus restrictions in China and increased restraint in global economic activities could raise some concerns about a more sustainable price hike,” said Jun Rong Yip, AG’s market strategist.
Meanwhile, the European Central Bank and the US Federal Reserve are preparing to raise interest rates further to curb inflation, which could increase the value of the US dollar against other currencies and make green-denominated oil more expensive. for investors.
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