Oil prices increased on Monday as supply worries fueled by decreased OPEC production, instability in Libya, and Russian sanctions overcame fears of a demand-sucking global recession.

Inflation in the eurozone reached a new high in June, bolstering the argument for quick European Central Bank rate rises, while consumer morale in the United States fell to a new low.

Brent oil climbed $1.55, or 1.4 percent, to $113.18 per barrel at 1318 GMT, after losing more than a dollar earlier. West Texas Intermediate (WTI) crude in the United States increased $1.34, or 1.2 percent, to $109.77.

On Thursday, officials in OPEC member Libya announced force majeure at the Es Sidr and Ras Lanuf ports, as well as the El Feel oilfield, claiming that oil production had dropped by 865,000 barrels per day (bpd).

After Russia’s invasion of Ukraine exacerbated supply worries, Brent came dangerously near to the 2008 record high of $147 per barrel this year.

Soaring energy costs as a result of Russian oil embargoes and limited gas supplies have pushed inflation to multi-decade highs in certain nations and fueled recession worries.

Source: Reuters

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