London August 9 2022: Oil prices see-sawed on Tuesday, as worries that a slowing economy could cut demand vied with news that some oil exports had been suspended on the Russia-to-Europe Druzhba pipeline that transits Ukraine.
Crude prices have been under pressure for weeks as fears mounted that a recession could cut oil demand.
Brent crude lost 77 cents, or 0.8%, to $95.88 a barrel at 1:01 p.m. EDT (1701 EDT). U.S. West Texas Intermediate (WTI) crude fell 88 cents, or 1%, to $89.88 a barrel. Earlier in the session, both benchmarks rose by more than $1 a barrel.
Russian pipeline monopoly Transneft said Ukraine had suspended oil flows via the pipeline because Western sanctions had prevented a payment from Moscow for transit fees from going through. That boosted prices earlier in the session.
Flows along the southern route of the Druzhba pipeline have been affected while the northern route serving Poland and Germany was uninterrupted.
“Not that we need it at this point, but it’s another reminder of how tight the market is and how sensitive the price is to supply disruptions, particularly those from Russia,” said Craig Erlam of brokerage OANDA.
