Oil prices rose on Monday, shaking off weaker demand expectations as supply concerns mount heading into the winter.
Brent crude futures rose $1.51, or 1.6%, to $94.35 a barrel by 1642 GMT. US West Texas Intermediate crude was up $1.28, or 1.5%, at $88.07.
US emergency oil stocks fell 8.4 million barrels to 434.1 million barrels in the week ended September 9, its lowest since October 1984, according to data released Monday by the US Department of Energy.
US President Joe Biden in March set a plan to release 1 million barrels per day over six months from the Strategic Petroleum Reserve to tackle high US fuel prices, which have contributed to soaring inflation.
The Biden administration is weighing the need for further SPR releases after the current program ends in October, Energy Secretary Jennifer Granholm told Reuters last week.
Global oil supply is expected to tighten further when a European Union embargo on Russian oil takes effect on December 5.
The G7 will implement a price cap on Russian oil to limit the country’s oil export revenue.
Published in The Express Tribune, September 13th, 2022.
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