(MENAFN- Trend News Agency)
Oil prices extended gains on Monday as investors stood on guard
for any moves against Russian oil and gas exports that might come
out of a meeting of leaders of the Group of Seven (G7) nations
meeting in Germany, Trend reports with reference to Reuters .
Producer nations in OPEC+, which includes Russia, will likely
stick to a plan for accelerated oil output increases in August when
they meet on Thursday, sources said.
But, for now, the pressing supply worries outweighed growing
concerns over the potential for a global recession following a
string of downbeat U.S. economic data.
Brent crude futures edged up 22 cents, or 0.2%, to $113.34 a
barrel by 0342 GMT after rebounding 2.8% on Friday. U.S. West Texas
Intermediate crude was at $107.73 a barrel, up 11 cents, or 0.1%,
following a 3.2% gain in the previous session.
Both contracts posted their second weekly decline last week as
interest rate hikes in key economies strengthened the dollar and
fanned recession fear.
However, oil prices remained well supported above $100 a barrel
while prompt monthly spreads remained wide in backwardation as
crude and oil product supplies remained tight.
Backwardation occurs when prompt prices are higher than prices
for delivery in future months, indicating tight supplies.
G7 leaders, who began their meeting on Sunday, are expected to
discuss options for tackling rising energy prices and replacing
Russian oil and gas imports, as well as further sanctions that do
not exacerbate inflation.
These measures include a possible price cap on Russian oil
exports to reduce Moscow's revenues while limiting damage to other
'It's unclear whether a price cap will achieve this outcome,'
Commonwealth Bank of Australia analyst Vivek Dhar said in a
'There's still nothing stopping Russia from banning oil and
refined product exports to G7 economies in response to a price cap,
exacerbating shortage conditions in global oil and refined product
G7 will also discuss the prospect of reviving the Iran nuclear
talks after the European Union's foreign policy chief met senior
officials in Tehran to try to unblock the stalled negotiations, a
French presidency official said on Sunday.
In addition, some of the G7 leaders are pushing for an
acknowledgement of the need for new financing for fossil energies
investment, two sources told Reuters on Sunday, as European states
scramble to diversify supplies.
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