Oil falls as recession fears boost demand concerns
Oil prices slipped on Tuesday, reversing earlier gains, as concerns of a possible global recession curtailing fuel demand outweighed supply disruption fears, highlighted by an expected production cut in Norway.
Brent crude fell $1.49, or 1.3%, to $112.01 a barrel by 1020 GMT.
US West Texas Intermediate (WTI) crude fell 15 cents, or 0.1%, to $108.28 a barrel, from Friday's close. There was no settlement for WTI on Monday because of the Independence Day public holiday in the United States.
"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 are becoming more concerned as the latest surge in gas and fuel prices added to worries about a recession.
In South Korea, inflation in June hit a near 24-year high, adding to concerns of slowing economic growth and oil demand.
Data showed business growth across the euro zone slowed further last month, with forward looking indicators suggesting the region could slip into decline this quarter as the cost of living crisis keeps consumers wary.
However, supply concerns still loomed. Earlier in the session, WTI rose more than $3 and Brent more than $1 on reports of output disruption in Norway.
Norwegian offshore workers began a strike that will reduce oil and gas output, the union leading the industrial action told Reuters.
The strike is expected to reduce oil and gas output by 89,000 barrels of oil equivalent per day (boepd), of which gas output makes up 27,500 boepd, Norwegian producer Equinor has said.
"Oil prices are ... benefiting from the strike in Norway, so far impacting only modest volumes, and the sharp increase in Saudi official selling prices for August, suggesting that Saudi exports might not increase that much next month," UBS analyst Giovanni Staunovo said.
Saudi Arabia, the world's top oil exporter, raised August crude oil prices for Asian buyers to near record levels amid tight supply and robust demand.
The official selling price (OSP) for August-loading Arab Light to Asia was raised by $2.80 a barrel from July to $9.30 a barrel over Oman/Dubai quotes, people familiar with the matter said, close to the record high premium of $9.35 per barrel hit in May.
"We suspect corrections in the energy market during the second quarter may end up being short-lived, with the risk of a prolonged period of high prices the most likely outcome," said Ole Hansen, head of commodity strategy at Saxo Bank, adding prices would trade within a wide range of $100 to $125.
Scotland will on Monday become the first country in the world to ensure universal access to free period products following the passing of landmark legislation in 2020. "Providing access to free period products is fundamental to equality and dignity, and removes the financial barriers to accessing them," said Social Justice Secretary Shona Robison. "We are proud to be the first national government in the world to take such action," she added.
Salman Rushdie has been taken off the ventilator and is able to talk, said his book agent Andrew Wylie, a day after The Satanic Verses author was stabbed at an event in New York. Rushdie remained hospitalized with serious injuries, but fellow author Aatish Taseer had tweeted late evening that he was “off the ventilator and talking (and joking).” Rushdie's agent confirmed the information to Associated Press without giving further details.
US President Joe Biden expressed shock over the "vicious attack" on Salman Rushdie and said that he pray for his health and recovery. White House termed the attack on Salman Rushdie as "appalling" and said that the Joe Biden-Kamala Harris Administration is praying for a speedy recovery of the renowned author. Hadi Matar, who is suspected of stabbing an Indian-born-British author in western New York State on Friday morning during a lecture was arraigned in centralized arraignment on Saturday and was remanded without bail at Chautauqua County Jail. A suspect has been taken into custody.
A 24-year old New Jersey man charged with attempted murder and assault for attacking author Salman Rushdie has pleaded not guilty. Hadi Matar of Fairview, New Jersey was arraigned in centralised arraignment on Saturday and was remanded without bail at Chautauqua County Jail. Authorities with New York State Police told PTI that Matar pleaded not guilty and was held in the Chautauqua County Jail.
Hadi Matar, a 24-year-old New Jersey man who stabbed Mumbai-born author Salman Rushdie in New York on Friday, has been charged with 'attempted murder and assault in the second degree', the Chautauqua Country district attorney's office said on Saturday. Matar was born and raised in the US, the head of the local municipality, Ali Qassem Tahfa, told news agency AFP. Rushdie remained hospitalised in serious condition.