Shell plans to shut down operations in October at Nigeria Bonga Oil production vessel.
SINGAPORE The oil prices increased in the early Asian trading on Monday, because of a weaker dollar as well as fears about supply in the lead-up to the European Union embargo on Russian oil in December helped to ease worries of a global economic recession that might dampen demand for oil.
Brent crude futures increased $1.15 (or 1.3 percent and reached $92.50 one barrel at the time of 0049 GMT after closing up 0.5 percent on Friday. U.S. West Texas Intermediate crude was trading at $86.16 for a barrel, an increase of $1.05 or 1.2 percent. The contract for the front month expires on Tuesday.
The two contracts, which fell over 1% in the this week amid concerns that a new interest rate hike of the Federal Reserves could slow global growth, were helped by a weaker dollar , which was able to rebound from multi-year highs. A lower U.S. dollar makes dollar-denominated commodities more affordable for those who hold of other currencies.
In China there was a reduction in COVID-19 regulations in Chengdu which is a city in the southwest that has greater than 21 million residents has eased worries about the energy demand from the world’s no. 2 energy consumer. China’s exports of diesel and gasoline have also rebounded, as did local inventories after Beijing announced new limits.
Related: Oil prices go up because of possible supply problems.
Despite concerns about what the future holds for the global economy Kuwait Petroleum Corporation’s (KPC) chief executive stated on Sunday that customers need the same volume of fuel without any change.
The Gulf state is currently producing over 2.8 million barrels of oil per day according to its OPEC contingent.
Additionally, the oil exporting and loading operations from Basrah’s Basrah oil terminal have been restored to normal levels this Saturday morning, Basrah Oil Company said on Friday, just a day after they were stopped due to a leakage that has since been controlled.
In Nigeria the country, Shell’s daily 200,000 barrels of oil Bonga deep storage vessel for water and offloading is scheduled to undergo maintenance in October, Shell’s spokesperson told on Sunday.
Signifying more supplies of sources in United States, U.S. energy companies added natural gas and oil drilling rigs in the United States for the first time in three weeks last week.
The number of rigs for oil and gas as a signpost of the future production, climbed by four to 763 in the week leading up to September. 16, the highest since August, the energy services company Baker Hughes Co said on Friday.
