Oil rises 2% but set for weekly loss on recession fears | Reuters
Oil prices rose about 2% in volatile trade on Friday but were still heading for a weekly decline as investors worried about a potential recession-driven demand downturn even though global fuel supplies remained tight.
Central banks around the world are raising interest rates to tame inflation, spurring fears that rising borrowing costs could stifle growth, while mass COVID-19 testing in Shanghai this week caused worries about potential lockdowns that could also hit oil demand. read more
Brent crude futures rose $2.46, or 2.4%, to $107.11 a barrel by 1:13 p.m. EDT (1713 GMT). U.S. West Texas Intermediate crude rose $2.10, or 2%, to $104.83 a barrel. Both benchmarks traded in negative territory and then rebounded from session lows.
Brent remained on track for a weekly decline of about 4.1% and WTI a loss of 3.4%, following on from the first monthly decline since November. Prices tumbled on Tuesday, when Brent's $10.73 drop was the contract's third-biggest daily fall since it started trading in 1988.
Friday 8 July 2022
With world in energy shock, #Saudi oil cushion gets very thin | Reuters
With world in energy shock, Saudi oil cushion gets very thin | Reuters
When French President Emmanuel Macron whispered in Joe Biden's ear last month that top global oil exporter Saudi Arabia has very little additional capacity to increase output, the U.S. President looked surprised.
Biden is due to land in Riyadh later this month, and he will likely hear the same sobering message – don't count much on Saudi Arabia to help replace Russian oil.
How much Saudi Arabia – seen as the "central bank" of global oil - can really pump is an industry secret and scepticism on this usually grows at times of high oil prices and strained global production. The kingdom, which says it can pump 12 million barrels per day, has regularly proved its doubters wrong in the past.
But as the world faces one of its worst ever supply crises, industry insiders, OPEC sources and other experts are asking whether, with current output of at least 10.5 million bpd, Saudi Arabia really has another 1.5 million bpd up its sleeve that can be brought online quickly and sustained.
Adding to scepticism about spare capacity, Saudi Arabia has been pumping below its OPEC quota despite near-record oil prices, and OPEC figures show drilling of new wells in the kingdom last year remained well below pre-pandemic levels.
When French President Emmanuel Macron whispered in Joe Biden's ear last month that top global oil exporter Saudi Arabia has very little additional capacity to increase output, the U.S. President looked surprised.
Biden is due to land in Riyadh later this month, and he will likely hear the same sobering message – don't count much on Saudi Arabia to help replace Russian oil.
How much Saudi Arabia – seen as the "central bank" of global oil - can really pump is an industry secret and scepticism on this usually grows at times of high oil prices and strained global production. The kingdom, which says it can pump 12 million barrels per day, has regularly proved its doubters wrong in the past.
But as the world faces one of its worst ever supply crises, industry insiders, OPEC sources and other experts are asking whether, with current output of at least 10.5 million bpd, Saudi Arabia really has another 1.5 million bpd up its sleeve that can be brought online quickly and sustained.
Adding to scepticism about spare capacity, Saudi Arabia has been pumping below its OPEC quota despite near-record oil prices, and OPEC figures show drilling of new wells in the kingdom last year remained well below pre-pandemic levels.
Oil heads for weekly loss as recession fears trump tight supply | Reuters
Oil heads for weekly loss as recession fears trump tight supply | Reuters
Oil rose in volatile trade on Friday but was still heading for a weekly decline as concern over a potential recession-driven demand downturn outweighed tight global supplies.
Central banks are raising interest rates to tame inflation, spurring fears that rising borrowing costs could stifle growth, while mass COVID-19 testing in Shanghai this week was cause for worry over potential lockdowns that could also hit oil demand. read more
Brent crude rose $1.10, or 1.1%, to $105.75 a barrel by 1338 GMT and U.S. West Texas Intermediate crude gained $2.14, or 2.1%, to $104.87.
Both benchmarks were still set to register weekly declines, following on from the first monthly decline since November. Prices had tumbled on Tuesday, when Brent's $10.73 drop was the contract's third-biggest fall since it started trading in 1988.
Oil rose in volatile trade on Friday but was still heading for a weekly decline as concern over a potential recession-driven demand downturn outweighed tight global supplies.
Central banks are raising interest rates to tame inflation, spurring fears that rising borrowing costs could stifle growth, while mass COVID-19 testing in Shanghai this week was cause for worry over potential lockdowns that could also hit oil demand. read more
Brent crude rose $1.10, or 1.1%, to $105.75 a barrel by 1338 GMT and U.S. West Texas Intermediate crude gained $2.14, or 2.1%, to $104.87.
Both benchmarks were still set to register weekly declines, following on from the first monthly decline since November. Prices had tumbled on Tuesday, when Brent's $10.73 drop was the contract's third-biggest fall since it started trading in 1988.
Soaring food prices put damper on #EidalAdha in Mideast | Reuters
Soaring food prices put damper on Eid al-Adha in Mideast | Reuters
The Eid al-Adha festival should be the busiest time of the year for Mahmoud Abu Holy, a livestock merchant in the Gaza Strip. But soaring prices have driven away many of the people who would usually buy a sheep or goat to sacrifice on the Muslim holiday.
Just a few days before Eid al-Adha begins on Saturday, Abu Holy says he cannot afford to cut prices because of the sky-rocketing cost of animal feed - a side effect of the Ukraine war which has jolted global agricultural markets.
"We stand here the whole day without selling any of our animals," said Abu Holy, struggling to find buyers at Khan Younis market in southern Gaza.
Mohammad Issa, 24, decided against buying once he discovered how much a sheep would cost. "Last year I bought a sacrifice for $300, today I found out it would cost $500 or $600 so I decided I wouldn't do it," he said.
The Eid al-Adha festival should be the busiest time of the year for Mahmoud Abu Holy, a livestock merchant in the Gaza Strip. But soaring prices have driven away many of the people who would usually buy a sheep or goat to sacrifice on the Muslim holiday.
Just a few days before Eid al-Adha begins on Saturday, Abu Holy says he cannot afford to cut prices because of the sky-rocketing cost of animal feed - a side effect of the Ukraine war which has jolted global agricultural markets.
"We stand here the whole day without selling any of our animals," said Abu Holy, struggling to find buyers at Khan Younis market in southern Gaza.
Mohammad Issa, 24, decided against buying once he discovered how much a sheep would cost. "Last year I bought a sacrifice for $300, today I found out it would cost $500 or $600 so I decided I wouldn't do it," he said.
Oil heads for weekly loss as recession fears trump tight supply | Reuters
Oil heads for weekly loss as recession fears trump tight supply | Reuters
Oil slipped in volatile trade on Friday and was heading for a weekly decline as concern over a potential recession-driven demand downturn outweighed tight global supplies.
Central banks are raising interest rates to tame inflation, spurring fears that rising borrowing costs could stifle growth, while mass COVID-19 testing in Shanghai this week stoked fears of potential lockdowns that could also hit oil demand. read more
Brent crude fell 36 cents, or 0.3%, to $104.29 a barrel by 0820 GMT and U.S. West Texas Intermediate crude dropped 50 cents, or 0.5%, to $102.23.
Both benchmarks were set to register weekly declines - Brent's fourth in succession and WTI retreating after a gain the previous week. Prices had tumbled on Tuesday, when Brent's $10.73 drop was the contract's third-biggest fall since it started trading in 1988.
Oil slipped in volatile trade on Friday and was heading for a weekly decline as concern over a potential recession-driven demand downturn outweighed tight global supplies.
Central banks are raising interest rates to tame inflation, spurring fears that rising borrowing costs could stifle growth, while mass COVID-19 testing in Shanghai this week stoked fears of potential lockdowns that could also hit oil demand. read more
Brent crude fell 36 cents, or 0.3%, to $104.29 a barrel by 0820 GMT and U.S. West Texas Intermediate crude dropped 50 cents, or 0.5%, to $102.23.
Both benchmarks were set to register weekly declines - Brent's fourth in succession and WTI retreating after a gain the previous week. Prices had tumbled on Tuesday, when Brent's $10.73 drop was the contract's third-biggest fall since it started trading in 1988.
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