Oil prices continue to gain due to weak dollar and tight supplies
Oil prices continued their gains today , Monday, supported by the weakness of the dollar and tight supplies
This rise reduced concerns about a recession and the possibility that large-scale shutdowns in China to combat “Covid-19” will again reduce demand for fuel.
Brent crude futures for September delivery rose 69 cents, or 0.7%, to $101.85 a barrel, after a 2.1% increase on Friday.
US West Texas Intermediate crude futures for August delivery also rose 27 cents, or 0.3%, to $97.86 a barrel, after rising by 1.9% in the previous session.
The US dollar retreated from multi-year highs on Monday, supporting the prices of commodities ranging from gold to oil.
A weak dollar makes dollar-denominated commodities more accessible to holders of other currencies.
Last week, Brent and West Texas Intermediate posted their biggest weekly declines in about a month amid fears of a recession hurting oil demand.
Mass testing for COVID-19 continued in parts of China this week, raising concerns about oil demand in the world’s second-largest oil consumer.
However, oil supplies remain tight, which supports prices.
China, the world’s second-largest oil consumer, on Sunday reported 691 new COVID-19 cases on Saturday, up from 547 the day before, while locally transmitted cases recorded their highest levels since May 23.
The Nord Stream 1 pipeline, the largest system to transport Russian natural gas to Germany, began annual maintenance work on July 11 and is scheduled to last for 10 days.
Governments, markets, and companies fear that the lockdown will be extended due to the war in Ukraine.
A halt to this gas supply would damage Germany, the world’s fourth-largest economy, and increase the possibility of a recession.
