Oil rises amid concern over global supply

Oil prices rose on Monday as good expectations for global economic growth supported the outlook for energy demand, and the United States said it was weighing options to cope with high prices.

Brent crude rose 69 cents or 0.83% to $ 83.43 a barrel, after losing nearly 2% last week. US oil West Texas Intermediate gained 66 cents, or 0.81%, at $ 81.93, after a 3% drop last week.

Both benchmark oil contracts had risen more than $ 1 a barrel in early trading.

For its part, the Mexican export mix rose 96 cents or 1.27% to 76.63 dollars a barrel.

US President Joe Biden on Saturday celebrated the passage in Congress of a long-overdue $ 1 trillion infrastructure bill that could boost economic growth and demand for fuel.

“Global demand is outpacing supply right now – Biden’s ‘Build Back Better’ plan could exacerbate the situation – and there is little the Biden government can do to respond to that demand,” said Phil Flynn, analyst. principal at Price Futures Group in New York.

Under pressure

Last week, the Organization of the Petroleum Exporting Countries and its allies, including Russia (OPEC +), decided not to accelerate their plans to increase production.

Biden had asked OPEC + to produce more crude to cool the market and on Saturday said his administration had “other tools” to deal with high oil prices.

US Secretary of Energy Jennifer Granholm said Monday that Washington was weighing its options to deal with high prices for gasoline and heating in the United States, which some analysts say could involve turning to the Strategic Reserve. of Petroleum of the country.

“After Tuesday, nobody wants to alienate the voters,” said Kevin Book of Clearview Energy, referring to an election night in which Democrats suffered heavy defeats.

Chinese export growth slowed in October but beat forecasts, driven by rising global demand ahead of the winter holiday season and improving supply chains affected by the coronavirus.

Global demand for jet fuel also appears to improve as more governments facilitate air travel by easing restrictions related to the pandemic.

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