WTI Crude Under Pressure Despite Global Supply Fears

WTI crude oil is under pressure although both OPEC and the IEA issued warnings that the global energy supply crisis could continue for some time during 2022. Oil is struggling to find direction and is running into some supply difficulties during midday trading session.

Oil price is up by 0.5% and trades at $96.05 but has fallen from the $97.94 high after ranging from the $93.69 low recorded during the Asian session on the backdrop of accelerating recession-linked worries.

The US reported that inflation continued to accelerate last month. The CPI increased 1.3% last month as gasoline and food costs are still high, more than the 1.1% expected.

WTI crude oil for August delivery ended up US$0.46 to settle at US$96.30 per barrel as September Brent ticked up by US$0.11 to US$99.60. China’s latest Omicron-linked lockdowns are adding more fears regarding oil prices.

The International Energy Agency that said oil production rose by 690,000 barrels per day last month on higher output from the United States and Russia as it cut its forecast for 2022 oil demand to a rise of 1.7-million barrels per day from its June forecast that expected a 1.8-million barrel increase.