Oil prices rise amid expected supply scarcity

Oil prices rose in early Asian trade on Monday amid expectations of scarce supplies worldwide, before the implementation of the EU’s ban on Russian oil imports pushed prices up.

Brent crude future contracts rose 54 cents, or 0.6 per cent, to $94.04 a barrel as of 01:25 GMT, while US West Texas Intermediate crude rose 51 cents, or 0.6 per cent, to $85.56 a barrel.

Brent rose 2 per cent last week on the back of the dollar’s decline and hopes for easing Covid-19 restrictions in China that would lead to higher demand in the world’s second-largest oil consumer.

Disruptions to global oil supplies are expected when the EU’s ban on Russian oil imports takes effect on 5 December.

The EU also plans to ban Russian oil product imports in February.

READ: Saudi oil power play bruises US ties but will not break them