Oil prices are hovering near $122 U.S. a barrel as global supplies continue to tighten.
West Texas Intermediate crude oil, the U.S. standard, rose 0.6% to $121.66 U.S. a barrel in
London trading, while Brent crude oil, the international benchmark, gained 0.5% to trade at
$122.92 U.S. per barrel.
The price increases are due to global supplies tightening further after Libya suffered a setback
to its daily production. Russia’s war in Ukraine also continues to exacerbate a tightening of
global crude oil supplies.
The price of crude oil has now rallied more than 60% this year and some analysts forecast more
gains in the coming months heading into the winter heating season.
Some buyers in Asia have been purchasing Middle Eastern oil earlier than usual in a sign of
strong demand. There has also been strength in the North Sea market that helps set the global
price of Brent crude oil.
