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oil: oil is rising, even if weak demand is due to rising limits

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MELBOURNE: Butter prices rose early in trading on Friday, but headed for their first weekly losses in three weeks as they worried about inflation and COVID’s blockade in China is slowing in the world growth Concerns about declining fuel supplies from Russia prevailed.

Brent crude futures rose 97 cents, or 0.9%, to $ 108.42 a barrel at 0008 GMT, while US West Texas Intermediate (WTI) futures rose $ 1.00, or 0.9% , to $ 107.13 per barrel.

However, both benchmarks were on the verge of declining within a week: Brent should decline by more than 3% and WTI by more than 2%.

The market continues to push and pull the prospect of a European Union ban on Russian oil supplies, as well as concerns about demand due to weaker global growth, inflation and COVID-19 containment in China.

“Demand concerns have grown quite a bit,” Commonwealth Bank commodities analyst Vivek Dhar said.

Inflation and aggressive rate hikes have brought the U.S. dollar to a 20-year high, limiting rising oil prices because a strong dollar makes oil more expensive for buyers holding other currencies.

Analystshowever, they continue to focus on the prospect of a ban on Russian oil by the European Union after Moscow imposed sanctions on European divisions of state-owned Gazprom this week and after Ukraine halted its gas transit route.

“Oil is supported by supply problems as Russia takes another step forward to introduce energy into its weapons,” said Stephen Innes, managing partner at SPI Asset Management.

A report by the International Energy Agency on Thursday highlighted factors in a market duel, saying that rising oil production in the Middle East and the United States and slowing demand growth are expected to “counteract the acute supply shortage amid worsening supply disruptions from Russia.” .

The agency said that compared to July, production from Russia fell by almost 3 million barrels per day (barrels per day), or about three times more than now, when sanctions for its war against Ukraine will be expanded or if they restrain further purchases.

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