Oil price climbs above $100 as it teeters between supply shortages and recession fears

Oil price climbs above $100 as it teeters between supply shortages and recession fears

At the beginning of the session this Thursday, operations were volatile, since prices came to show losses of about US$2 per barrel at one point, but then advanced almost US$1.

Oil prices rose on Thursday, following heavy losses in the previous two sessions, as investors moved to edit on supply tightness even as fears of a global recession persisted.

By 1121 GMT, Brent crude futures were up 61 cents, or 0.6%, at $101.30 a barrel; and US WTI futures were up 65 cents, or 0.7%, at $99.18.

Trading was volatile, with prices at one point showing losses of about $2 a barrel, but then advancing nearly $1.

“Russia’s oil supply is on the verge of falling as the year goes on and they run out of western parties to maintain the fields, and the rest of OPEC hasn’t been able to invest more in production capacity. I think the days of oil at $100 it will be with us for a while,” said Jeffrey Halley, senior market analyst at OANDA.

Operators are alert to possible interruptions in the supply of oil in the Caspian Pipeline Consortium (CPC), which a Russian court destroys the activity for 30 days.

In a sign that oil supplies may remain tight, Washington on Wednesday withheld sanctions against OPEC member Iran as additional pressure on Tehran as it seeks to revive a 2015 Iran nuclear deal.

Oil prices have fallen in recent weeks, highlighting fears of a sharp economic slowdown and a hit to commodity demand.

Brent and WTI closed Wednesday at their lowest level since April 11. The declines follow a dramatic sell-off on Tuesday when WTI lost 8% while Brent sank 9%.

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