Oil prices rise as supply uncertainty increases

Oil prices rose on Monday after Iran’s nuclear talks appeared to have reached a dead end and with the implementation of a Russian oil ban imminent, scarce supplies struggled to meet still-strong demand.

Brent crude futures rose 88 cents, or 1 percent, to $93.72 a barrel by 1100 GMT. US West Texas Intermediate crude futures rose 69 cents, or 0.8 percent, to 87.48 percent.

Prices were little changed last week due to the balance between gains from a small supply cut by the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, a group known as OPEC+, and the ongoing COVID-19-related shutdown in China, the world’s largest oil importer. the scientist.

France, Britain and Germany said they had “serious doubts” about Iran’s intentions to revive the nuclear deal on Saturday. Failure to revive the 2015 deal will keep Iranian oil off the market, keeping global supplies tight.

The Group of Seven will implement a Russian oil price cap to limit Russia’s lucrative oil export earnings after its invasion of Ukraine in February, and plans to take measures to ensure the continued flow of oil to emerging countries.

But the US Treasury has warned that capping the price of Russian oil could raise US oil and gasoline prices further in the winter.

China’s demand for oil may shrink for the first time in two decades this year, as Beijing’s zero-Covid policy to completely eradicate the Corona virus causes people to stay at home during the holidays and reduces fuel consumption.

Meanwhile, the European Central Bank and the US Federal Reserve are preparing to raise interest rates further to curb inflation, which could raise the value of the US dollar against other currencies and make dollar-denominated oil more expensive for investors.