Oil prices rise on weaker dollar, supply worries
- Saudi energy minister warns against misuse of oil stocks
- IEA’s Birol: World in ‘first truly global energy crisis’
- POLL-US rise in rough stocks, drop in products
- API shows crude and distillate inventories rising – market sources
NEW YORK, Oct 25 (Reuters) – Oil prices edged higher on Tuesday, rebounding from an early plunge of more than $1 a barrel, on a weaker dollar and supply issues highlighted by the Saudi minister Energy.
Brent crude futures rose 26 cents to $93.52 a barrel, while US West Texas Intermediate crude futures rose 74 cents to $85.32.
Both benchmarks rose and fell $1 during the session.
The U.S. dollar index fell during afternoon trading, making dollar-denominated oil cheaper for other currency holders and helping to push prices higher.
Further support came from comments by Saudi Energy Minister Prince Abdulaziz bin Salman that energy stocks were being used as a mechanism to manipulate markets.
“It is my duty to make it clear that the loss of emergency stocks may be painful in the coming months,” he said at the Future Investment Initiative (FII) conference in Riyadh.
Meanwhile, tight liquefied natural gas (LNG) markets around the world and supply cuts by major oil producers have placed the world in the midst of “the first truly global energy crisis”, Fatih Birol said. , the head of the International Energy Agency (IEA). said.
The comments from Riyadh and the IEA are “a reminder that when it comes to the energy crisis, it’s far from over,” said Price Futures Group analyst Phil Flynn. “There is always concern that the market is undersupplied.”
Uncertain economic activity in the United States and China, the world’s two largest oil consumers, limited oil’s gains, however.
On Monday, government data showed China’s crude oil imports in September were 2% lower than a year earlier, as business activity contracted in the euro zone, Great Britain Britain and the United States in October.
Goldman Sachs chief executive David Solomon said he thought a recession in the United States was “very likely”, while a recession could occur in Europe.
The U.S. Federal Reserve could raise its overnight rate past the 4.50% to 4.75% range if it doesn’t see real behavioral changes, he told the conference. FII.
U.S. crude inventories rose about 4.5 million barrels for the week ended Oct. 21, market sources said, citing figures from the American Petroleum Institute on Tuesday. Gasoline inventories decreased by approximately 2.3 million barrels, while distillate inventories increased by approximately 600,000 barrels.
U.S. government crude inventory data is due Wednesday.
Reporting by Stephanie Kelly; Additional reporting by Rowena Edwards and Mohi Narayan; Editing by Marguerita Choy, Paul Simao and David Gregorio
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