Arrow-right Camera
The Spokesman-Review Newspaper

The Spokesman-Review Newspaper The Spokesman-Review

Spokane, Washington  Est. May 19, 1883
Clear Night 49° Clear
News >  Business

Oil advances back toward $100 a barrel with markets in risk-on mode

July 18, 2022 Updated Mon., July 18, 2022 at 9:54 p.m.

By Bloomberg

Oil rose back near $100 a barrel, aided by a weaker dollar that put commodities broadly on a firmer footing.

West Texas Intermediate added as much as 3.1%. European stock markets and U.S. equity futures were higher on Monday.

The dollar weakened – making commodities priced in the currency more attractive – as investors scaled back bets on how aggressively the Federal Reserve will tighten interest rates.

Other raw materials including copper also gained.

Last week President Biden concluded a trip to the Middle East and said he expects further oil supply increases from Saudi Arabia to help tame fuel costs.

However, local ministers insisted that policy decisions would be taken according to market logic and within the OPEC coalition, a grouping that includes Russia.

Crude has slumped since mid-June as concerns about a potential recession ripped through commodity markets, eroding the gains that followed Russia’s invasion of Ukraine.

While the drop has been a boost for the U.S. administration, Biden remains eager to get the Organization of Petroleum Exporting Countries to add supplies to bring prices down further and help quell inflation.

OPEC and its allies including Russia next meet on Aug. 3 after members agreed to revive the crude supplies that were halted during the coronavirus pandemic.

“We continue to expect a further tightening of the oil market, warranting higher oil prices,” UBS analysts including Giovanni Staunovo wrote in a note to clients.

“Following the meeting between the U.S. and Saudi leaders over the weekend, we learned that OPEC+ will only open the taps if the market conditions warrant it.”

Investors also focused on the return of crude shipments from Libya.

Prime Minister Abdul Hamid Dbeibah said that the country’s exports are on track for a full resumption after months of outages as he justified his replacement of the leadership at state-run oil company National Oil.

South Africa’s largest fuel producer declared force majeure on the supply of petroleum products due to delays in crude deliveries to the Natref refinery it jointly owns.

In India, meanwhile, gasoline and diesel sales during the first half of July dropped from last month as seasonal rains cut demand in the third-biggest energy consumer.

The drop was the first monthly decline in three months.

The Spokesman-Review Newspaper

Local journalism is essential.

Give directly to The Spokesman-Review's Northwest Passages community forums series -- which helps to offset the costs of several reporter and editor positions at the newspaper -- by using the easy options below. Gifts processed in this system are not tax deductible, but are predominately used to help meet the local financial requirements needed to receive national matching-grant funds.

Active Person

Subscribe now to get breaking news alerts in your email inbox

Get breaking news delivered to your inbox as it happens.