Oil was up on Tuesday morning in Asia-Strike in Norway
2022.07.05 08:16
Oil was up on Tuesday morning in Asia over supply tightness concerns as a strike in Norway threatened to disrupt oil and gas output.
Brent oil futures rose 0.23% to $113.73 by 1:09 AM ET (5:09 AM GMT) and crude oil WTI futures jumped 1.86% to $110.46.
On Tuesday, Norwegian offshore workers began a strike that will reduce oil and gas output, according to Reuters.
The strike is expected to reduce oil and gas output by 89,000 barrels of oil equivalent per day (boepd). Oil production will be cut by 130,000 barrels per day from Wednesday, accounting from around 6.5% of Norway’s production, according to Reuters.
“Crude oil gained as investor focus returned to signs of market tightness,” ANZ analysts said in a note.
Investors are also assessing the outlook for demand amid tightening monetary policies from major central banks.
Investors now are also monitoring Australia’s interest-rate decision, which is due later in the day. The central bank is expected to deliver a back-to-back half-percentage point interest rate hike.
“Oil is still struggling to break out from its current recessionary malaise as the market pivots away from inflation to economic despair,” Stephen Innes of SPI Asset Management said in a note.
Investors now await U.S. crude supply data from the American Petroleum Institute, due later in the day.
