Oil prices rose for a fourth day on supply concerns According to Reuters

© Reuters. FILE PHOTO: A worker uses a gas pump at the Brazilian oil company’s Petrobras gas station in Brasilia, Brazil March 7, 2022. REUTERS / Adriano Machado / File Photo / File Photo

By Florence Tan and Dmitry Zhdannikov

LONDON/SINGAPORE (Reuters) – Oil prices rose for a fourth straight session on Wednesday with worries about tight supply easing concerns about a weaker global economy.

Futures for August were little changed at $117.9 per barrel at 0917 GMT. The August contract expires on Thursday and the September contract is more active at $114.06, up 23 cents, or 0.2%.

US West Texas Intermediate (WTI) crude oil futures rose 44 cents, or 0.4%, to $112.20 a barrel.

Both contracts rose more than 2% on Tuesday as concerns about tight supply due to Western sanctions on Russia added to concerns that demand could slow in a potential recession. Future.

“The market is caught in the crossfire between the current deteriorating macro backdrop and the potential threat of a recession, pitted against the strongest fundamental oil market established in decades, possibly yet to come. ever,” RBC Capital’s Mike Tran said in a note.

Saudi Arabia and the United Arab Emirates are considered the only two members of the Organization of the Petroleum Exporting Countries (OPEC) with enough capacity to make up for lost Russian supply.

French President Emmanuel Macron said this week he was told these producers would struggle to increase output further.

Hiroyuki Kikukawa, General Manager of Research at Nissan (OTC:) Securities.

OPEC and OPEC+, which include allies like Russia, began a series of two-day meetings on Wednesday with sources saying the possibility of a major policy change was unlikely this month.

“Oil prices are likely to stay above $110 a barrel, also due to concerns about potential supply disruptions due to hurricanes as the United States enters summer,” he said.

Analysts also warn that political turmoil in Ecuador and Libya could tighten supply further.

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