|
Brent crude firmed 32 cents, or 0.3%, to $120.04 a barrel at
0858 GMT after touching an intraday high of $121.95.
U.S. West Texas Intermediate (WTI) crude futures were up 40
cents, or 0.3%, at $119.27 a barrel after hitting a three-month
high of $120.99.
Saudi Arabia raised the July official selling price (OSP) for
its flagship Arab light crude to Asia by $2.10 from June to a
$6.50 premium, the highest since May, when prices hit all-time
highs due to worries of disruption in supplies from Russia.
The price increase followed a decision last week by the
Organization of the Petroleum Exporting Countries and allies,
together called OPEC+, to boost output for July and August by
648,000 barrels per day, or 50% more than previously planned.
The increased target was spread across all OPEC+ members,
however, many of which have little room to increase output and
which include Russia, which faces Western sanctions.
"With only a handful of... OPEC+ participants with spare
capacity, we expect the increase in OPEC+ output to be about
160,000 barrels per day in July and 170,000 bpd in August," JP
Morgan analysts said in a note.
On Monday, Citibank and Barclays raised their price forecasts
for 2022 and 2023, saying they expected Russian output and
exports to fall by around 1-1.5 million bpd by end-2022.
Separately, Italy's Eni and Spain's Repsol could begin shipping
small volumes of Venezuelan oil to Europe as soon as next month,
five people familiar with the matter told Reuters.
(Additional reporting by Florence Tan in Singapore and Sonali
Paul in Melbourne; editing by Jason Neely)
[© 2022 Thomson Reuters. All rights
reserved.]
This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
