Oil steady as market balances fears
There would be a three-month transition before banning EU shipping services from transporting Russian oil, instead of the initial one month. Photo: reuters
Oil prices were little changed on Tuesday as the market balances fears that an economic slowdown will hit oil demand against tight supply and a weaker US dollar.
Brent futures for September delivery fell 14 cents, or 0.1%, to $106.13 a barrel by 1448 GMT, while US West Texas Intermediate (WTI) crude for August fell 27 cents, or 0.3%, to $102.33.
The August WTI contract expires on Wednesday. The more actively traded September contract was down 38 cents to $99.04 a barrel. On Monday, both front-month contracts rose by over 5% in the biggest daily percentage gain for Brent since mid-April and WTI since mid-May.
Oil prices have whipsawed between concerns over supply as Western sanctions on Russian crude and products over the Ukraine war disrupt trade flows, and worries that central bank efforts to tame inflation may trigger a demand-destroying recession.
China stocks closed lower as rising Covid-19 cases and fresh property woes clouded the prospect of an economic recovery.
Published in The Express Tribune, July 20th, 2022.
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