Brent oil stalls as market weighs supply disruption, recession fear

Brent oil stalls as market weighs supply disruption, recession fear

Shafaq News / Brent oil prices were little changed on Tuesday, reversing earlier gains of $1, as investors weighted supply concerns, highlighted by a potential production cut in Norway, and worries about a possible global recession curtailing fuel demand.

Brent crude futures for September settlement edged up 0.2%, or 22 cents, to $113.73 a barrel by 0432 GMT.

U.S. West Texas Intermediate crude climbed $1.95, or 1.8%, to $110.38 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.

On Tuesday, 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 output will be cut by as much as 130,000 barrels per day from Wednesday, the country's oil and gas association forecast on Sunday. That would equal about 6.5% of Norway's production, according to a Reuters calculation.

Data showing improving activity in the services sectors of the economies of Japan and China, among the world's biggest oil importers, provided some support for prices on Tuesday.


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