Oil rose on Tuesday morning in Asia on concerns about supply constraints and a strike in Norway that could damage European oil and gas production.
The strike in Norway threatens around 60% of its gas exports. Amid tensions in the energy market, Norway could have to cut its gas exports by around 60% this weekend due to a strike by an oil union, the sector's employers' organization warned on Tuesday.
At 6:55 am (Brasília time), Brent Oil was down 1.05% to US$112.28 per barrel, while WTI Oil was up 0.16% to US$108.56 per barrel in futures market.
This stop is expected to reduce the supply of oil and natural gas by 89,000 barrels of oil equivalent per day. Oil production will be cut by 130,000 barrels a day from Wednesday, which corresponds to 6.5% of Norwegian production, according to Reuters.
“Oil has re-entered the focus of investors due to new signs of market restriction,” said analysts at ANZ.
Investors are also assessing the demand outlook amid tightening monetary policies by major central banks.
Another point of attention for investors is the repercussion of the interest rate decision in Australia. The country's central bank raised rates by half a percentage point.
“Oil is still struggling to break out of the current recessionary malaise as the market shifts from concern about inflation to economic despair,” said Stephen Innes of SPI Asset Management.
Investors are now awaiting US supply data, to be released by the American Petroleum Institute, later in the day on Tuesday.
Source: investing.com
