Oil up as supply fears overshadow global recession woes

By Sibel Morrow

ANKARA (AA) - Oil prices fell slightly on Monday due to supply fears after Libya announced a dramatic drop in oil output although global economic recession concerns continue to support upward price movements.

International benchmark Brent crude was trading at $113.47 per barrel at 0657GMT for a 0.30% increase after closing the previous session at $113.12 a barrel.

American benchmark West Texas Intermediate (WTI) was at $108.34 per barrel at the same time for a 0.32% gain after the previous session closed at $107.99 a barrel.

Climbing over $121 a barrel on Friday, the price of Brent closed at $113.47, losing almost $7 a barrel in intraday trade, as global economic growth concerns weighed on markets in the aftermath of multiple interest rate hikes around the world, coupled with demand worries as China pursues its COVID-19 measures.

Oil prices clawed back from Friday’s declines, as Libya’s crude oil production dropped to less than 200,000 barrels per day amid a continued shutdown of ports and facilities.

In a statement, Libya’s Ministry of Oil and Gas said the closure had affected almost all Libya’s oil fields and ports.

"There are only a few number of operational fields that produce between 100,000 to 200,000 barrels a day," the Ministry said.

Meanwhile, the Russia-Ukraine war continues to impact the global supply map.

According to data from the Chinese General Administration of Customs, China's crude oil imports from Russia increased 55% year on year to a record level in May, surpassing Saudi Arabia as the leading supplier, as refiners took advantage of discounted supplies amid sanctions against Moscow.