Oil prices closed higher on Friday after falling in recent days, amid concerns about oil supply and fears of a recession.
the barrel of Brent North Sea freight for August delivery gained 2.78% to $113.12 in London. While the barrel of West Texas Intermediate (WTI) for the same month rose 3.21% to 107.62 dollars in New York.
“Prices evolve based on two arguments: either we think that there will be little supply for growing economies, or we are afraid of facing a reduction in demand due to a recession in the world due to the inflation of the prices of raw materials. and higher interest rates,” summed up Andy Lipow of Lipow Oil Associates.
The economic outlook is worrying, according to Tamas Varga, an analyst at PVM Energy.
“Demand for petroleum products would fall in the event of a recession,” said Ole R. Hvalbye, an analyst at Seb. “Current astronomical refinery margins would collapse and an essential bullish factor for Brent would evaporate,” he said.
“That said, the consensus is that the oil market will see strong demand and tight supply during the summer months,” Varga added.
The strike that for 12 days has shaken Ecuador it also reduces available production, Lipow noted.
rrg