SINGAPORE, Could 15 (Reuters) – Oil costs rose a greenback a barrel on Monday on the prospect of tightening provides in Canada and elsewhere, though recession fears stored pressuring the market.
Brent crude futures had been up $1.23, or 1.7% to $75.40 a barrel at 1:14 p.m. EDT (1714 GMT). U.S. West Texas Intermediate crude was at $71.32 a barrel, up $1.28, or 1.8%.
Wildfires raged in Alberta, Canada, shutting in massive quantities of crude provide, and costs rose on fears they may worsen, stated Mizuho analyst Robert Yawger.
At the least 300,000 barrels of oil equal per day (boepd) manufacturing was shut in final week in Alberta. In 2016, wildfires knocked greater than one million boepd of manufacturing offline there.
Additionally supporting oil costs, the U.S. might begin repurchasing oil for the Strategic Petroleum Reserve (SPR) after finishing a congressionally mandated sale in June, Vitality Secretary Jennifer Granholm instructed lawmakers on Thursday.
World crude provides might additionally tighten within the second half as OPEC+ – the Group of the Petroleum Exporting International locations and allies together with Russia – plan further output cuts.
Flows of northern Iraqi crude oil to Turkey’s Ceyhan port have but to renew following Baghdad’s request to restart them final week, trade sources stated on Monday, serving to to maintain world provides tight.
Fears of a slowdown within the world economic system restricted beneficial properties in oil costs.
Final week, oil benchmarks fell for a fourth consecutive week, the longest streak of weekly declines since September 2022, over fears of a U.S. recession and dangers of a historic default on authorities debt in early June.
“If credit score situations ease over the approaching months, allaying financial fears for the world’s largest economic system, oil costs might bounce again with out help but it surely appears slightly untimely at this level,” stated OANDA analyst Craig Erlam.
Reporting by Florence Tan; Modifying by Muralikumar Anantharaman
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