RIYADH: Oil prices fell on Tuesday as concerns over a possible recession and China’s COVID-19 curbs outweighed an expectation of tight global supply and a pick-up in fuel demand with the US summer driving season.
Brent crude futures for July slid 61 cents, or 0.5 percent, to $112.81 a barrel by 0402 GMT. US West Texas Intermediate crude futures for July delivery dropped 55 cents, or 0.5 percent, to $109.74 a barrel. Both benchmarks fell by more than $1 earlier in the session.
Sri Lanka increases fuel prices
Sri Lanka increased fuel and transport prices on Tuesday, a long-flagged move to combat its debilitating economic crisis, but the hikes are bound to exacerbate galloping inflation, at least in the short term.
Power and Energy Minister Kanchana Wijesekera said in a message on Twitter that petrol prices would increase by 20 percent to 24 percent while diesel prices would rise by 35 percent to 38 percent with immediate effect.
“Cabinet also approved the revision of transportation and other service charges accordingly,” he said.
Wijesekera said also that people would be encouraged to work from home “to minimize the use of fuel and to manage the energy crisis” and that public sector officials would work from office only when instructed by the head of the institution.
Brazil picks second new Petrobras CEO in 2 months
Senior Brazilian economy ministry official Caio Mario Paes de Andrade will be the next CEO of state-run oil company Petrobras, the government said on Monday, replacing a predecessor who served less than two months in the job.
Paes de Andrade will take over from outgoing CEO Jose Mauro Coelho, picked to lead Brazil’s leading oil company in early April, becoming its fourth chief executive in the past two years.
The shakeup is President Jair Bolsonaro’s latest bid to influence Petrobras’ fuel pricing policy as he seeks to boost his re-election prospects amid galloping energy-driven inflation, according to analysts.
The mines and energy ministry said in a statement announcing the leadership shakeup that Brazil is facing extreme volatility in the oil and gas market. It did not specify the reason for Coelho’s ouster, nor say when the new chief will formally take over.
(With input from Reuters)