Oil prices are recovering after a sharp decline, supported by the drop in supplies

Oil prices rose today, Thursday, recovering from a steep drop from the previous session, supported by scarce supplies and the summer season peak in demand after rising US interest rates raised fears of a slowdown. economic growth and a decline in fuel demand.

THE future on Brent crude oil rose $ 1.10, or 0.9 percent, to $ 119.61 a barrel, while future West Texas Intermediate crude oil rose $ 1.28, or 1.1 percent, to $ 116.59 a barrel.

Prices fell more than 2% yesterday, Wednesday, after the Federal Reserve (the US central bank) raised interest rates by 75 basis points, the largest rate hike since 1994.

The dollar index fell from its highest level since 2002 yesterday, easing the pressures from falling oil prices. A stronger dollar makes oil more expensive for holders of other currencies and limits demand.

Investors remained focused on limited supplies and recovery in demand after Western sanctions limited Russian oil exports, as prices should receive support from the recovery in oil demand. in China with the easing of restrictions to fight Covid-19.

And data from the Energy Information Administration revealed that U.S. crude oil production, which hasn’t changed much in recent months, increased by 100,000 barrels a day last week to 12 million barrels a day, the highest level since April. 2020.

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