RIYADH: Oil prices extended gains on Monday, propped up by a weaker dollar and tight supplies that offset concerns about recession and the prospect of widespread COVID-19 lockdowns in China again reducing fuel demand.
Brent crude futures for September settlement rose 69 cents, or 0.7 percent, to $101.85 a barrel by 0421 GMT, after a 2.1 percent gain on Friday.
US West Texas Intermediate crude futures for August delivery edged up 27 cents, or 0.3 percent, to $97.86 a barrel, after climbing 1.9 percent in the previous session.
The US dollar retreated from multi-year highs on Monday, supporting prices of commodities ranging from gold to oil. A weaker dollar makes dollar-denominated commodities more affordable for holders of other currencies
Petronas says taking steps to protect global assets
Malaysia’s state energy firm Petronas said it was taking steps to protect the legal position of all its global assets after two Luxembourg-based subsidiaries were served with a seizure notice last week over a dispute with the heirs of a late sultan.
The last sultan of Sulu’s heirs are seeking to seize Malaysian government assets around the world in a bid to enforce an arbitration award handed to them by a French court in February. The subsidiaries were served with a seizure notice by Luxembourg court bailiffs.
Venezuela denounces attack on gas pipeline
Venezuelan Oil Minister Tareck El Aissami said on Twitter on Sunday that technical personnel at Venezuela’s state-run oil company PDVSA and firefighters were putting out a fire on a natural gas pipeline in the country’s east.
In his comments on Twitter, El Aissami called the fire “a new attack” on the gas system.
His comments on Twitter did not specify which pipeline was on fire. However, three industry sources said that he was referring to a fire on a section of a pipeline in the state of Monagas.
That fire began during the late afternoon on Saturday on a section of the pipeline near the Aguasay 5A plant, according to an internal report dated July 16 from PDVSA, as state-owned Petroleos de Venezuela is known, and reviewed by Reuters.
El Aissami attributed the fire to unidentified terrorist groups, saying “It’s the same terrorist groups as always, who have acted against the national interest to affect the lives of our people.”
Libya’s NOC continues to do its job according to the law
Libya’s National Oil Corp. is continuing to do its job according to the law, it said on its social media feeds on Sunday, days after the Government of National Unity sought to replace the NOC chief and its board of directors.
NOC said it will not comply with any “illegal” sacking measures from an “outgoing” government.
Algeria refinery project not progressing as expected
The development of Algeria’s $3.5 billion Hassi Messaoud refinery project is not progressing as expected, amid higher global energy prices and increased demand for refined products, MEED reported citing industry sources.
According to the report, the project is on hold for the moment as the contractors are yet to deploy on the ground.
“They have done some preliminary engineering work and that is all. Just about 5 percent of the entire project has been completed,” said one source.
Sasol oil will not meet commitments in July
South Africa’s largest fuel producer Sasol has declared force majeure on the supply of petroleum products as deliveries to the Natref refinery got delayed, according to a Bloomberg report.
Natref refinery has a production capacity of 108,000 barrels a day, and the force majeure is expected to drastically increase petroleum imports to the country, the report added.
“Sasol Oil will not be in a position to fully meet its commitments on the supply of all petroleum products from July 2022,” the company said in a statement.
US’ talks with India on price cap on Russian oil ‘encouraging’
US Treasury Secretary Janet Yellen described as “encouraging” talks with India about a proposed price cap on Russian oil that Washington is pushing to drive down oil prices and make it harder for Moscow to fund its war in Ukraine.
Yellen, who arrived in Seoul on Monday evening, told Reuters in an interview en route to the South Korean capital that she was feeling generally positive about the initiative.
“We’ll see where they come out. The conversations I’ve had have generally been encouraging,” Yellen said aboard a military aircraft on her way from Indonesia to South Korea.
(With input from Reuters)
