RIYADH: Oil prices rose 1 percent on Tuesday, clawing back more of last week’s losses as investors focused on tight supplies of crude and fuel products rather than concerns about a recession dampening demand going forward.
Brent crude futures rose $1.08, or about 1 percent, to $115.21 a barrel at 0400 GMT, adding to a 0.9 percent gain on Monday. The benchmark contract fell 7.3 percent last week in its first weekly fall in five.
US West Texas Intermediate crude futures for July, which expires later on Tuesday, rose to $112.01 a barrel, up $2.45, or 2.2 percent, from Friday’s close. There was no settlement on Monday, which was a US public holiday. WTI dropped 9.2 percent last week.
The more-active WTI contract for August CLc2 was up $2.12 at $110.11 a barrel.
Petrobras CEO resigns
Brazilian state-run oil company Petrobras said on Monday that its chief executive Jose Mauro Coelho has resigned.
The company also added that an interim CEO will now be appointed for the board’s consideration.
Norway oil union leader hopeful of averting strike
The leader of a Norwegian oil workers’ union said on Monday a wage deal struck with oil companies “had a lot of good things” and that he hadn’t heard negative feedback from members, suggesting it could get approval and strike action would be averted.
Two of the three unions that negotiated the agreement earlier this month are seeking approval from their members before they formally endorse it. If they don’t, a strike could hit petroleum output.
Norway is Western Europe’s largest oil and gas producer.
Audun Ingvartsen, leader of the Lederne union, said he personally thought the offer, which he said gave a pay rise of between 4 percent and 4.5 percent and includes extra benefits, had positive elements.
“The deal has a lot of good things,” he said in an interview. “Hopefully, our members will say yes, and there will be no strike ... I haven’t heard much of negative reaction,” he said.
“If it’s a big ‘No’, then we will, of course, have to listen to our members.”
(With input from Reuters)