$100+ Oil Is Back For The Long Haul

  • SHARE

  • mailMail

$100+ Oil Is Back For The Long Haul

  • SHARE

  • mail

Commodity

Oil

Writer

IPG Staff2

Oil · 19 July, 2022

$100+ Oil Is Back For The Long Haul

Oil prices gained over 4.6% on Monday as the market attempted to digest developments in the Middle East, and as the dollar weakened slightly.

Commodity

Oil

Writer

IPG Staff2

A39xUH9aVfy7AAAAAElFTkSuQmCC

Brent oil prices climbed to $105.8 per barrel by 3:42
EST Monday, up 4.65% on the day. West Texas Intermediate (WTI) was trading at

just over $102.

 

Prices rose Monday as traders assessed the Saudi
sentiment following U.S. President Joe Biden’s meeting with the Crown Prince on

Friday.

 

On Sunday, Biden’s advisor on international energy
affairs, Amos Hochstein, said Washington believed OPEC’s producers in the

Middle East–namely Saudi Arabia and the UAE–would take some steps to boost

supply to the oil market soon.

 

However, the overriding sentiment seems to be that the
Saudis have no intention of intervening in oil prices at this time. Last week’s

sell-off based on notions that Biden’s trip to Saudi Arabia might result in an

OPEC decision to increase production is now being reversed.


Monday’s higher oil prices are also being driven by a

weakening U.S. dollar thanks to investors who have softened their expectations

of a more aggressive approach to interest rates by the Fed next week.

 

The U.S. dollar index fell 0.464% on Monday.

 

Biden’s meeting with the Saudi Crown Prince had
markets hedging oil lower, despite widespread doubts that anything would be

accomplished in terms of increasing OPEC output.

 

On Monday, Iraq’s oil minister told Bloomberg that oil
is likely to continue trading above $100 for the remainder of this year.

 

“I would like OPEC to retain its tools to measure and
control output and maintain the existing balance,” Iraqi Oil Minister Ihsan

Abdul Jabbar told Bloomberg. “We will discuss that with our partners.”

 

The next meeting for OPEC+ will be on August 3rd.

 

By Charles Kennedy / Jul 18, 2022, 2:45 PM