WTI crude futures rose above $98 per barrel on Monday, reversing losses from earlier in the session as investors grappled with ongoing supply tightness, with President Joe Biden’s visit to Saudi Arabia failing to yield any pledge from Arab leaders to boost production further. Saudi ministers insisted that OPEC+ would base their policy decisions on market dynamics ahead of the group’s meeting on August 3. The moves also came even after top US energy envoy Amos Hochstein indicated confidence on Sunday that oil producers would take “a few more steps” to increase supply without specifying which countries would boost output.
Meanwhile, the US oil benchmark dropped almost 7% last week and has been declining since mid-June as growing recession concerns, driven by aggressive rate hikes worldwide, ripped through commodity markets. Traders also remain wary about the prospect for wider Covid-19 lockdowns in China and western proposals for a price cap on Russian oil.