US West Texas Intermediate (WTI) crude futures for August delivery were up $1.72, or 1.8%, at $99.31, after rising 1.9% in the previous session.
The US dollar fell from multi-year highs on Monday, supporting commodity prices ranging from gold to oil. A weaker dollar makes greenback-traded commodities more affordable for holders of other currencies.
Both Brent and WTI posted their biggest weekly declines in about a month last week on fears of a recession affecting oil demand. Mass COVID testing continues in parts of China this week, raising concerns about demand for oil from the world’s second-largest consumer.
However, supplies remain tight. As expected, US President Joe Biden’s trip to Saudi Arabia has not prompted OPEC’s main producer to commit to increasing oil supply.
Biden wants Gulf oil producers to increase production to help lower oil prices and reduce inflation.
World markets are focusing this week on the resumption of Russian gas flows to Europe through the Nord Stream 1 gas pipeline, whose maintenance will end on July 21. Governments, markets and companies fear that the closure will be prolonged by the war in Ukraine.
“Brent crude will find support at the end of the week if Russia does not return gas to Germany following the Nord Stream 1 hold,” OANDA Principal Analyst Jeffrey Halley said.
The loss of that gas to Germany, the world’s fourth largest economy, would hit it hard and increase the risk of recession.
Source: Ambito
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