Oil prices edged higher on Tuesday over supply concerns amid ongoing tension between Russia and Ukraine and the unfolding sanctions on Russian fossil fuels, with EU countries now seeking alternative energy sources.
International benchmark Brent crude was trading at $114.38 per barrel at 0657GMT for a 0.22% increase after closing the previous session at $114.13 a barrel.
American benchmark West Texas Intermediate (WTI) was at $109.23 per barrel at the same time for a 1.15% gain after the previous session closed at $107.99 a barrel.
“Crude oil rebounded, as concerns of an economic slowdown eased,” Australia and New Zealand Banking Group (ANZ) commodity strategist Daniel Hynes said in an e-mailed note.
Although US President Joe Biden said a US recession is not inevitable, Hynes noted his remarks came after the US Federal Reserve raised rates by 75 basis points, signaling the likelihood of more aggressive rate hikes that would risk economic growth.
Exerting more upward pressure on prices, supply concerns heightened after Libya said oil production had fallen to alarmingly low levels from an average of 1.2 million barrels a day just last year.
The energy crisis, especially in EU countries, is now accelerating after the cutting of Russian oil and gas exports.
Germany on Monday said it would prioritize coal power plants and increase natural gas in storage to reduce natural gas consumption.
By Sibel Morrow