Oil prices rose in early Asian trade on Monday, as a lower dollar and supply concerns ahead of the European Union’s ban on Russian oil in December countered concerns about a worldwide recession dampening fuel consumption. Brent oil prices were up 1.3% at $92.50 per barrel at 0049 GMT.
The price of West Texas Intermediate crude in the United States was $86.16 a barrel, up 1.2%. The first month’s contract will expire on Tuesday. When the dollar falls in value, dollar-denominated commodities become less costly for holders of other currencies. The relaxation of COVID-19 limitations in Chengdu, a southern city of more than 21 million people, has allayed fears about demand in the world’s second-largest energy user.
After Beijing announced new limits, China’s gasoline and diesel exports also increased, relieving excessive local stocks. Shell’s 200,000 barrels per day Bonga deep water storage and offloading vessel will be serviced in Nigeria in October. Last week, US energy businesses installed oil and natural gas rigs for the first time in three weeks, indicating increased supply from the US.