Oil prices edged higher on Monday after losing steam last week due to tight market conditions and material takeaways for the energy industry from US President Joe Biden’s visit to the Middle East.
Both Brent, the benchmark for two thirds of the world's oil, and West Texas Intermediate, the gauge that tracks US crude, recovered from steep declines Tuesday last week when Brent plunged nearly 7 per cent and WTI plummeted 8 per cent.
Brent was up 2.78 per cent at $104 at 12.11pm UAE time on Tuesday. WTI, the gauge that tracks US crude, gained 2.57 per cent to $100.1 a barrel.
"Crude oil prices continue to remain unfazed by Biden’s visit to Saudi Arabia," said Naeem Aslam, chief market analyst at Avatrade.
"Last week’s sell-off became an opportunity for many as investors are still betting that oil prices are unlikely to drop significantly anytime soon. Traders got one clear message from Biden’s recent visit to Saudi Arabia ... the message is that it is Opec+ that makes the oil supply decision [that] Opec+ will continue to control oil supply, and one country alone cannot determine the oil supply."
During his address to the US-Arab summit in Jeddah, Saudi Arabia's Crown Prince Mohammed bin Salman reiterated that the kingdom, which is the world's biggest exporter of crude, will not have any additional production capacity beyond the 13 million barrels per day it is targeting by 2027.
READ MORE : https://www.thenationalnews.com/business/energy/2022/07/18/oil-prices-edge-higher-amid-tight-market-and-weaker-dollar/
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