New York June 24 2022: Oil rose by more than 2% on Friday supported by tight supply, although crude was heading for a second weekly fall on concern that rising interest rates could push the world economy into recession.
Brent crude was up $2.78, or 2.5%, at $112.83 a barrel by 12:10 p.m. EDT (1610 GMT), while U.S. West Texas Intermediate (WTI) crude gained $3.02, or 2.9%, to $107.29.
“There Fed was talking very hawkish which was undermining the oil rally, but sentiment is changing a little especially on strong economic data,” said John Kilduff, partner at Again Capital LLC in New York.
Oil came close this year to an all-time high of $147 reached in 2008 as Russia’s invasion of Ukraine exacerbated tight supplies just as demand has been recovering from the COVID pandemic.
Crude has gained support from the almost total shutdown of output in OPEC member Libya due to unrest. The Libyan oil minister said on Thursday the National Oil Corporation chairman was withholding production data from him, raising doubts over figures he issued last week.
Stephen Brennock of oil broker PVM said recession fears dominated sentiment, adding: “That being said, the consensus remains that the oil market will see high demand and tight supply over the summer months, thereby limiting the downside.”
