Oil prices are edging higher to start the week on growing concerns about global supplies.
West Texas Intermediate (WTI) crude oil, the U.S. standard, is trading near $94 U.S. per barrel
after gaining 2.5% last week. Brent crude oil, the international benchmark, is up 0.7% to
$101.65 U.S. a barrel.
In Libya, clashes between militias have raised fears of further upheaval in that oil-producing
nation. While Libya’s oil output remains stable, investors and analysts are watching for signals
that the escalating violence will put oil shipments at risk.
At the same time, Iran said exchanges with the U.S. over a proposal to revive a nuclear deal will
carry on into September, lowering expectations that an agreement is imminent to increase oil
flows from that Middle Eastern nation.
Crude oil is on track for a third straight monthly decline in August as global economic growth
slows with central banks raising interest rates, hurting energy consumption.
Federal Reserve Chairman Jerome Powell has warned that more interest rate increases are
needed, while a top European Central Bank official said over the weekend that higher interest
rates are needed even if the region’s economy is pushed into a recession.
In Europe, future power prices hit a record of more than 1,000 euros ($993 U.S.) per megawatt-
hour for the first time as Russia continues to tighten flows of natural gas to the continent.
The Organization of the Petroleum Exporting Countries (OPEC) next meets on September 5 to
consider production levels for October and to review its outlook for the remainder of this year.
