Brent, WTI Prices Climb

Brent, WTI Prices Climb
Brent, WTI Prices Climb

Oil prices climbed on Monday as a weaker dollar and supply concerns ahead of the European Union embargo on Russian oil in December offset fears of a global recession that could dampen fuel demand.
Brent crude futures rose 60 cents, or 0.7%, to $91.95 a barrel after settling up 0.5% on Friday. US West Texas Intermediate crude was at $85.50 a barrel, up 39 cents, or 0.5%. The front-month contract expires on Tuesday, Reuters reported.
Both contracts, which slid more than 1% last week on concerns that another interest rate hike by the Federal Reserves could slow global growth, were supported by a weaker dollar which came off multi-year highs.
A weaker US dollar makes dollar-denominated commodities less expensive for holders of other currencies.
"The market still has the start of European sanctions on Russian oil hanging over it. As supply is disrupted in early December, the market is unlikely to see any quick response from US producers," ANZ analysts said Monday.
More supply disruptions remain a risk, while easing Covid-19 restrictions in China could also provide some optimism, the analysts said.
China has started easing Covid curbs in Chengdu, a southwestern city of more than 21 million people, which has helped soothe concerns about demand in the world's No. 2 energy consumer. 

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