Prices strengthen amid the ongoing pressure on fuel demand from Europe’s energy crisis and supply constraints, analyst saysThe global shift to cleaner energy sources meant developed economies weren’t investing in efforts to boost fossil fuel production, while poorer nations were being pressed to adopt cleaner-burning natural gas. Picture: 123RF/ENSUP
US West Texas Intermediate crude futures jumped $1.09, or 1.2%, to $94.15 a barrel at 4.41am, adding to a 2.5% gain last week.“Oil prices were stronger amid the ongoing pressure on fuel demand from Europe’s energy crisis, and supply constraints,” National Australia Bank commodities analysts said in a note.
Both benchmark contracts had traded lower earlier in the day as the dollar climbed after Friday's blunt comments from Federal Reserve chair Jerome Powell that the US faced a prolonged period of slow growth amid further rate hikes. Oil prices have been buoyed by hints from Saudi Arabia and other Opec members and allies, together called Opec+, that they could cut output to balance the market.