RIYADH: Oil fell by nearly 3 percent on Monday, pressured by expectations of weaker global demand and by US dollar strength ahead of possible large increases to interest rates, though supply worries limited the decline.
Brent crude for November delivery fell $2.64, or 2.89 percent, to $88.71 a barrel by 04.30 p.m Saudi time.
US West Texas Intermediate for October dropped 2.96, or 3.48 percent, to $82.15.
Kuwait produces more than 2.8 million bpd barrels per day of oil
Kuwait Petroleum Corporation’s CEO said on Sunday that the Gulf state currently produces more than 2.8 million barrels per day of oil in accordance with its Organization of the Petroleum Exporting Countries' quota.
Sheikh Nawaf Saud Al-Sabah also said Kuwait has plans to increase crude oil production whenever the market needs it, but currently, the customers of the state-owned corporation still demand the same volumes with no change.
Kuwait produces 650 million cubic feet of gas per day, and plans to increase it to one billion, he added.
On the market environment, he said “ambiguity exists in all markets, whether gas or oil ... there are questions about the world economic future, especially with the interest rates hikes and the expected recession in global economies and the extent of their impact on oil demand.”
OPEC and allies including Russia, known as OPEC+, have been ramping up oil output this year as they look to unwind record cuts put in place in 2020 after the pandemic slashed demand.
However, OPEC+ in recent months has failed to achieve its planned output increases due to underinvestment in oilfields by some OPEC members and by losses in Russian output.
Rosneft says it could challenge Germany in court over subsidiary move
Rosneft said on Friday it could go to court to challenge a decision by Berlin to take the firm’s German subsidiary under trusteeship.
In a statement, Rosneft said the move was illegal. Germany, citing the need to protect the economy, is taking over the business’ Schwedt refinery, which supplies 90 percent of Berlin’s fuel.
(With input from Reuters)