(MENAFN- Trend News Agency)
Oil prices fell on Monday, paring early gains as investors took
profit from a surge in the previous session, albeit in the shadow
of supply fear as the European Union prepares an import ban on
Russian crude and with limited increase in OPEC output, Trend reports with reference
to Reuters .
Brent crude futures were down $1.66, or 1.5%, at $109.89 a
barrel at 0356 GMT, while U.S. West Texas Intermediate (WTI) crude
futures dropped $1.55, or 1.4%, to $108.94 a barrel.
Both benchmarks, which jumped about 4% last Friday, earlier
climbed by more than $1 a barrel, with WTI reaching its highest
since March 28 at $111.71.
'Investors scooped up profit after a sharp gain last Friday,'
said Naohiro Niimura, a partner at Market Risk Advisory.
'Still, with a planned ban by the EU on Russian oil and slow
increase in OPEC output, oil prices are expected to stay close to
the current levels near $110 a barrel until they head lower late
this year due to weakening global demand,' he said.
The European Union aims to agree a phased embargo on Russian oil
this month despite concerns about supply in eastern Europe, four
diplomats and officials said on Friday, rejecting suggestions of a
delay or watering down proposals.
Last week, Moscow slapped sanctions on several European energy
companies, causing worries about supplies.
Elsewhere OPEC+ - the Organization of the Petroleum Exporting
Countries (OPEC) and allies including Russia - has been
undershooting previously agreed plans for output increases due to
under-investment in oilfields in some OPEC members and, more
recently, losses in Russian output.
The latest monthly report from OPEC showed its output in April
rose by 153,000 barrels per day (bpd) to 28.65 million bpd, lagging
the 254,000 bpd rise that OPEC is allowed under the OPEC+ deal.
Adding to pressure, China processed 11% less crude oil in April
than a year earlier, with daily throughput falling to the lowest
since March 2020 as refiners slashed operations on weaker demand
due to widespread COVID-19 lockdowns.
Meanwhile, U.S. gasoline futures set an all-time high again on
Monday as falling stockpiles fuelled supply concerns.
'Oil prices will remain bullish, especially WTI's near-term
contract, as U.S. gasoline prices continued to rise amid weaker
imports of petroleum products from Europe,' said Kazuhiko Saito,
chief analyst at Fujitomi Securities.
Tags:
- European Union
- oil prices
- brent
- OPEC
- Russia
- wti
- OPEC+
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