Oil mixed as market balances tight supply with recession-related fears

By Murat Temizer

ANKARA (AA) - Oil prices were volatile, with Brent trading higher on supply issues, while WTI fell as traders weighed supply concerns against worries about a global economic downturn or China's COVID-19 demand limitations, on Monday.

Oil prices lost more than 6% during the week ending July 8, as recession fears negatively affected the outlook for global oil demand and because the US dollar index climbed to the highest level in almost 20 years.

International benchmark Brent crude was trading at $105.85 per barrel at 0611 GMT for a 1.09% decrease after the previous session closed at $107.02 a barrel.

American benchmark West Texas Intermediate (WTI) was at $103.40 per barrel at the same time for a 1.322% loss after the previous session closed at $104.79 a barrel.

The oil rig count in the US increased this week, according to the latest data released by oilfield services company Baker Hughes on Friday.

The number of oil rigs, an indicator of short-term production in the country, rose by 2 to 597 for the week ending July 8 from 595 the previous week.

The latest data on COVID-19 cases in China showed numbers had fallen from the previous day. However, worries are being raised about the possibility of wider lockdowns in Shanghai.

However, once a novel omicron subvariant was found in Shanghai, there are worries about the possibility of wider lockdowns.

Also, on the supply side, the market is still concerned about Western countries' efforts to cap Russian oil prices. President Vladimir Putin has warned that additional sanctions might have "catastrophic" effects in the global energy market.