Oil prices rise on supply disruption jitters as geopolitical tensions grow

Oil prices slide amid fears of supply boost, weaker demand

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Singapore: Crude oil prices fell on Monday, pressured by expectations of increased supply and weak demand.

As of 0151 GMT, Brent crude oil futures fell 58 cents, or 0.7%, to US$81.59 per barrel. US West Texas Intermediate (WTI) crude oil fell 58 cents, or 0.7%, to US$80.21 per barrel.

Both markets have fallen in the past three weeks, hit by a stronger U.S. dollar and speculation that the administration of President Joe Biden may release oil from the US Strategic Petroleum Reserve to cool prices.

“The White House has been discussing how to deal with higher inflation, and some officials have called for the use of strategic reserves or the cessation of US exports,” ANZ Bank analysts said in a report.

US energy companies added oil and natural gas rigs for the third consecutive week this week. Crude oil prices are hovering near a seven-year high, prompting some drilling workers to return to the well site.

Energy services company Baker Hughes said on Friday that in the week ending November 12, the number of oil and gas rigs increased by six to 556, the highest level since April 2020.

At the same time, the Organization of the Petroleum Exporting Countries (OPEC) last week lowered its forecast of world oil demand for the fourth quarter by 330,000 barrels per day (bpd) from last month’s forecast, because high energy prices hindered the economy from COVID-19. Resurgence in the epidemic.

Rosneft, the world’s second-largest oil company by production after Saudi Aramco, warned on Friday that a “super cycle” may occur in the global energy market. As supply exceeds demand, oil prices may rise further.

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