Black commodity trading bounced back from a slump late last week as concerns over the recession and tightening crude oil supplies continued to weigh on the oil market.
At the opening of the European session, Brent crude futures rose slightly to $ 112 a barrel while US WTI trading was up around $ 109 a barrel.
Crude oil supply constraints continue to weigh on the market as OPEC+ struggles to produce more crude oil due to lack of investment, capacity limits and political unrest in some member countries.
The escalating political unrest in Libya has prevented the country from meeting its production quota.
According to National Oil Corp., Libya’s exports have dropped to around 365,000 or 409,000 barrels a day, down about 865,000 barrels a day compared to normal levels.
Meanwhile, the latest reduction was also seen from Norway, where a planned strike by Norwegian oil and gas workers this week was reported to have pushed the country’s oil producers to a depletion of 130,000 barrels a day.
While these factors were seen to help push up crude oil prices, at the same time the rise was limited by concerns over the risk of a global recession, moreover economic data in major countries began to show a slowdown in June due to high inflation.
