RIYADH: Oil prices rose nearly $1 per barrel on Thursday after dropping through key technical support levels in the previous session, as an energy standoff between European nations and Russia focused investor minds on how tight fuel supply may become.
Brent crude futures rose by 91 cents, or 1 percent, to $88.91 per barrel by 0331 GMT after closing at their lowest since early February in the previous session. US crude futures were up 95 cents, or 1.2 percent, at $82.89 per barrel.
UK to announce dozens of new North Sea oil and gas licenses
The British government is expected to announce dozens of new North Sea oil and gas exploration licenses in an effort to boost domestic production, two sources familiar with the government’s discussions said.
The exact number of new licenses was still to be confirmed, one of the sources, who spoke on condition of anonymity, said. The other said it could be as many as 130. The announcement could come as soon as Sept. 8.
Prime Minister Liz Truss, who was appointed on Sept. 6, is due to set out to parliament on Thursday her government’s plans for tackling soaring energy bills. During the leadership campaign, she repeatedly said boosting domestic energy supply would be part of her focus on bringing down prices.
The licensing round will not offer any short-term relief to energy bills as it typically takes between five to 10 years from initial exploration until oil and gas are produced from a field.
Britain’s last offshore licensing round was in 2020.
India’s August fuel demand rises 16.3 percent year-on-year
India’s fuel demand rose 16.3 percent in August compared with the same month last year.
Consumption of fuel, a proxy for oil demand, totaled 17.81 million tons, data from the Petroleum Planning and Analysis Cell of the Oil Ministry showed on Sept. 7.
Sales of gasoline, or petrol, were 11.6 percent higher from a year earlier at 3 million tons.
Cooking gas or liquefied petroleum gas sales increased 3 percent to 2.39 million tons, while naphtha sales jumped 23.5 percent to 1.16 million tons.
Sales of bitumen, used for making roads, were up about 51 percent, while fuel oil use edged up 16.5 percent in August.
(With input from Reuters)