Oil falls on hopes that US supply disruption will ease: Al Attiyah Foundation – The Peninsula

Oil falls on hopes that US supply disruption will ease: Al Attiyah Foundation – The Peninsula

Doha: Oil prices fell around 2 percent on Friday, on expectations that supply disruptions in the US Gulf of Mexico would be short-term, while recession fears clouded the demand outlook. Brent crude futures fell $1.45, to settle at $98.15 a barrel, while US West Texas Intermediate (WTI) crude fell $2.25, to settle at $92.09 a barrel. For the week, Brent gained 3.4 percent, while WTI rose 3.5 percent.

On Thursday, top US Gulf of Mexico oil producer Shell said it stopped production at three deep-water platforms in the region after a pipeline leak. The three platforms are designed to produce up to 410,000 barrels of oil per day combined. The damaged oil pipeline was repaired late Friday, with producers moving to reactivate some of the halted production.

Last week, the market also absorbed contrasting demand views from the Organization of the Petroleum Exporting Countries (Opec) and the International Energy Agency (IEA). Opec cut its forecast for growth in world oil demand in 2022 by 260,000 barrels per day (bpd). It now expects demand to rise by 3.1 million bpd this year. The IEA, meanwhile, raised its demand growth forecast to 2.1 million bpd, citing gas-to-oil switching in power generation.

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