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1. WTI crude oil futures trading volume was 1,033,142 lots, a decrease of 79,938 lots from the previous trading day. Open interest was 2,091,639 lots, an increase of 11,778 lots from the previous trading day. 2. Brent crude oil futures trading volume was 250,347 lots, a decrease of 2,621 lots from the previous trading day. Open interest was 239,842 lots, a decrease of 23,281 lots from the previous trading day. 3. Natural gas futures trading volume was 742,856 lots, a decrease of 1,166,358 lots from the previous trading day. Open interest was 1,655,969 lots, a decrease of 54,203 lots from the previous trading day.February 4th - Amundi Wealth Management stated that the European Central Bank (ECB) is expected to keep its policy rate unchanged on Thursday, but lower-than-expected inflation could lead to a rate cut later this year. The company noted, "The risk of lower-than-expected inflation at the start of the year reinforces our view that the ECB may cut rates again to 1.75% later this year." According to data from the London Stock Exchange Group, the money market has not yet priced in any ECB rate cut expectations this year. Currently, the ECBs deposit facility rate is 2.00%.On February 4th, Norwegian energy giant Aquino reported a 32% year-on-year decline in fourth-quarter profits due to falling oil prices. As the first major European energy company to release its quarterly earnings report, Aquinos results may set the tone for the upcoming earnings season. Previously, crude oil prices declined amid ample supply. The companys adjusted operating profit after tax shrank to $1.55 billion from $2.29 billion in the same period last year, below the average analyst expectation of $1.59 billion. The company announced a share buyback program of up to $1.5 billion in 2026. Last year, crude oil prices experienced their largest annual drop since 2020, and a large-scale oversupply is expected to continue to weigh on prices in 2026. European natural gas prices also fell sharply last year due to a surge in seaborne supply. Within Aquino, increased production mitigated the impact of falling prices, with both its Norwegian and overseas oil fields increasing output.Japans Ministry of Finance: An agreement has been reached in principle with the Philippines on a new tax treaty.The yield on 40-year Japanese government bonds rose 1.5 basis points to 3.940%.

Oil costs increase as supply restrictions trump economic worries

Charlie Brooks

Jul 05, 2022 11:12


Oil prices climbed on Monday as supply worries spurred by a decrease in OPEC production, unrest in Libya, and sanctions against Russia trumped fears of a worldwide recession that would diminish demand.


In June, Euro zone inflation hit an all-time high, boosting the case for rapid rate rises by the European Central Bank, while consumer sentiment in the United States reached an all-time low.


Brent oil rose $2.26, or 2%, to $113.89 a barrel as of 12:47 p.m. ET (1648 GMT), after shedding more than $1 in early trading. The price of U.S. West Texas Intermediate (WTI) crude rose $2.20, or 2%, to $110.63 despite the lack of trading activity over the Fourth of July holiday.


According to a Reuters survey, the Organization of the Petroleum Exporting Countries (OPEC) failed to meet its June goal of increasing production.


Thursday, authorities in OPEC member Libya declared force majeure at the Es Sidr and Ras Lanuf ports and the El Feel oilfield, claiming a reduction of 865,000 barrels per day in oil output (bpd).


Meanwhile, more than two weeks of unrest have caused Ecuador to lose almost 2 million barrels of production, according to Petroecuador, the country's state-owned oil company.


This week, a strike in Norway may restrict supply from the biggest oil producer in Western Europe and reduce overall petroleum production by 8 percent.


"This background of rising supply interruptions clashes with a probable shortage of spare production capacity among Middle Eastern oil producers," said Stephen Brennock of oil trader PVM, referring to the producers' limited ability to pump more oil.


And prices will climb if new oil production does not reach the market shortly.


On Monday, British Prime Minister Boris Johnson asked OPEC+ to raise oil output to tackle the growing cost of living.


As a consequence of Russia's invasion of Ukraine, supply concerns have sent Brent oil prices close to 2008's record high of $147 a barrel.


As a consequence of restrictions on Russian oil and limited gas supplies, surging energy prices have driven inflation in certain countries to multi-decade highs and stoked fears of a recession.


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