Oil prices rose about 1%, with Brent settling at a two-week high in volatile trading on Tuesday, as traders worried about tight supply and a weaker dollar.
Brent oil futures rose $1.08, or 1.0%, to $107.35 a barrel. US crude oil (WTI) rose $1.62, or 1.6 percent, to $104.22.
Brent oil prices closed the highest since July 4 and WTI the highest since July 8.
“Crude oil made an incredible turnaround today,” said Robert Yawger, managing director of energy futures at Mizuho.
The dollar fell to a two-week low against a basket of other currencies, making oil cheaper for buyers using other currencies.
Oil prices rebounded, supported by supply concerns, but pressured by efforts by global central banks to rein in inflation that raised fears that a potential recession could cut energy demand.
Last week, US President Joe Biden visited top oil exporter Saudi Arabia, where crude exports in May fell to a four-month low.
Biden hopes to reach an agreement on increasing oil production to regulate fuel prices, but the kingdom’s foreign minister said the market’s problem is not a lack of crude but a lack of refining capacity.
In the US, crude oil inventories are expected to affect prices. Analysts polled by Reuters forecast crude inventories rose by 1.4 million barrels last week.
The American Petroleum Institute (API), will release its inventory report on Tuesday. The US Energy Information Administration (EIA) reported on Wednesday.
Natural gas prices in the US fell 3%
U.S. natural gas prices fell about 3% on Tuesday (July 19), as production continued to rise to record levels.
That price drop comes despite forecasts for hotter weather and higher-than-expected demand for air conditioners next week.
Extreme heat has pushed electricity demand to record highs in several parts of the country, including Texas and other central US states.
Freeport, the second-largest U.S. LNG export plant, consumed about 2 billion cubic feet per day (bcfd) of gas before closing on June 8. Freeport LNG said the facility could resume operations. around October 22.
Gas futures fell 21.5 cents, or 2.9%, to $7,264 per million British thermal units (mmBtu). On Monday, the contract closed at its highest level since June 13.
Data provider Refinitiv said average gas production in the 48 US states rose to 96.1 bcfd in July from 95.3 bcfd in June. That compares to a weekly record high. month is 96.1 bcfd in December 2021.
Refinitiv forecasts average US gas demand including exports will fall from 100.9 bcfd this week to 100.1 bcfd next week as heatwave temperatures begin to ease in some parts of the country. .
Average gas arrivals to US LNG export plants fell to 11.1 bcfd in July from 11.2 bcfd in June due to a short-term incident at Venture Global LNG’s Calcasieu Pass plant in Louisiana on Monday. .
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