Oil prices rise as supply shortage worsens

Oil prices rose by about $1 in volatile trade on Tuesday, June 14, as the impact of global supply shortages outweighed fears that fuel demand would be hit by a recession and new restrictions imposed to contain the spread of Covid-19 in China.

The price of US West Texas Intermediate crude rose 96 cents, or 0.8%, to $ 121.89 a barrel. Brent crude futures rose $1.05, or 0.9%, to $123.32 a barrel.

The global supply shortage was exacerbated by the decline in exports from Libya amid a political crisis that affected production and ports, while other producers from the OPEC + alliance are facing difficulties in meeting production quotas and Russia faces an embargo on its oil due to its invasion of Ukraine.

The market is awaiting data from the American Petroleum Institute on inventories, expected to be released today, Tuesday, and data from the Energy Information Administration, tomorrow, Wednesday, to know to what extent the shortage of supplies in the market has reached.