US crude oil futures West Texas Intermediate (WTI) for August delivery rose u$s5.01or a 5.1%a u$s102.6after uploading a 1.9% in the previous session.
The US dollar fell on Monday from its multi-year highs, 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 last week for about a month due to 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.
Nevertheless, 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.
The US president 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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