• 4 minutes Energy Armageddon
  • 6 minutes How Far Have We Really Gotten With Alternative Energy
  • 10 minutes Wind droughts
  • 2 days "Biden Is Running U.S. Energy Security Into The Ground" by Irina Slav
  • 2 days GREEN NEW DEAL = BLIZZARD OF LIES
  • 22 hours "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 21 hours "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 1 day Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 8 days "Forget Oil, The Real Crisis Is Diesel Inventories: The US Has Just 25 Days Left" by Zero Hedge - 5 Stars *****
  • 21 hours The Federal Reserve and Money...Aspects which are not widely known
  • 5 days Is Europe heading for winter of discontent with extensive gas shortages?
  • 1 day "Europe’s Energy Crisis Has Ended Its Era Of Abundance" by Irina Slav
  • 1 day "Dodgy Demand Data? The Oil Price Collapse Conspiracy" by Alex Kimani
  • 8 days "The Global Digital ID Prison" by James Corbett of CorbettReport.com
  • 9 days Goldman Betting on Cryptocurrencies
  • 12 days Сryptocurrency predictions
Charles Kennedy

Charles Kennedy

Charles is a writer for Oilprice.com

More Info

Premium Content

Oil Prices Rebound As Crude Supply Tightens

  • Crude prices rose 2% on Friday morning. 
  • Oil rebounded on the first day of July after having lost 9% in June.
  • Supply outages in Libya add to the already tight supply situation.

Oil prices started the month of July rising by 2% early on Friday, rebounding from Thursday’s losses after Libya declared force majeure on more crude export terminals, adding further concerns over tight global supply.

As of 10:07 a.m. ET on Friday, WTI Crude was up 1.76% at $107.53 and Brent Crude was gaining 1.87% to $110.83.

Oil rebounded at the start of July after losing 9% in the month of June—the first loss in eight months. The aggressive interest rate hikes from the Fed and other central banks last month had the global markets – including the commodities markets and equities – worried that the sharp rise in key rates would lead to a recession in the near future.

The reopening in fits and starts for Shanghai and other Chinese cities with the “zero COVID” policy approach also weighed on oil prices last month.

As July began, market participants turned to the supply picture and outages there are boosting the bulls’ case.

On top of supply losses from Russia, and OPEC and OPEC+ failing to pump to targets, Libya—the perennial wild card—declared force majeure on the oil export terminals of Sidra and Ras Lanuf, in addition to the Al-Feel field, while the Brega and Zueitina oil ports continue to be under force majeure. Libya’s exports have recently ranged from 365,000 barrels per day (bpd) to 409,000 bpd, which is a decrease of 865,000 bpd compared to “normal production rates under normal circumstances,” the National Oil Corporation (NOC) said.

Commenting on oil’s moves in the coming weeks, Saxo Bank’s Strategy Team said on Friday: “Following a dismal end to the first half, many investors will in the short-term focus mostly on reducing exposure before heading on a much-needed summer vacation.”

“With this in the mind, traders with a macroeconomic focus selling “paper” oil through futures as a hedge against recession may have the upper hand against the physical market where price supportive tightness remains,” the bank’s strategists said.

By Charles Kennedy for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News