Oil was little changed in early trade on Monday, as Russia’s plans to deepen oil supply cuts continued to support prices, while increasing global inflation risks and rising crude inventories in the United States weighed.
West Texas Intermediate U.S. crude futures (WTI) was trading at $76.36 a barrel, 4 cents, or 0.05% higher, while Brent crude futures was down 2 cents, or 0.02%, at $83.14 a barrel at 0114 GMT.
Russia plans to cut oil exports from its western ports by up to 25% in March versus February, exceeding its previously announced production cuts of 5% of its output during the month.
Despite oil inventories in the United States at their highest since May 2021, the U.S. Federal Reserve meeting signalling further monetary tightening and a strong rally in the dollar last week, prices edged higher early on Monday before paring some gains.
“Oil looks like it wants to stay in a trading range until we have a clearer outlook with China’s COVID reopening and on how bad of a recession the Fed will induce for the U.S. economy,” said Edward Moya, an analyst at OANDA.
Oil prices have fallen by about a sixth in the year since Feb. 24, 2022, when Russian troops first marched into Ukraine.
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