Oil prices rose slightly on Friday, rebounding from a 2% drop in early trading, as investors weighed a tightening outlook for energy supplies amid ongoing global economic slowdown fears.
Brent crude futures rose by 79 cents, or 0.83%, to US$95.46 a barrel at 10.55 A.M. (Thai time), after falling 1.5% in the previous session.
Meanwhile, West Texas Intermediate futures gained 79 cents, or 0.90%, to US$88.96 a barrel, after falling 2% on Thursday.
Beginning this month, the OPEC+ group will undertake significant output cuts, and in December, the European Union will impose sanctions on Russian crude flows. A global diesel shortage is further complicating matters.
Oil prices are expected to rise for a second consecutive week, but futures have lost about a third of their value since June due to fears of a demand slowdown.
Head of the European Central Bank Christine Lagarde warned of the possibility of a “mild recession” as a result of further rate hikes by the Federal Reserve and the Bank of England. In addition, Saudi Arabia has reduced oil prices for December sales to Asia, indicating some concern about future demand.
According to officials familiar with the situation, the US and its partners have agreed to cap the price of Russian oil at a fixed level, although it is not yet known at what level the cap will be established.