Crude oil trade traded steady at a three-month high as tight global oil markets overcame concerns about the recession and new Covid-19 restrictions in China would hurt demand.
At the opening of the European session, Brent crude futures traded up 1% to $ 123.40 a barrel while US WTI traded up 0.75% to trade at $ 122 a barrel.
Libya’s decline in oil exports amid political turmoil plaguing production and ports exacerbated supply pressures as other OPEC+ producers struggled to reach their output targets as a result of cuts from Russian oil.
Meanwhile in China, the spread of the Covid-19 outbreak increased in Beijing after 166 new cases were reported causing movement restriction measures to be implemented in the affected areas.
This will not only hamper China's development plans, but is also feared to have an impact on demand from the world's major oil consumers.
Meanwhile, the surge in inflation in the United States has raised concerns that more aggressive tightening measures by the central bank will lead to a recession.
These concerns to some extent limited the movement of oil prices from rising higher.
