Oil Prices Slow After Three Day Gains – 28 June, 2022

After rising for three consecutive sessions, oils gains were slowed as global supply tightens, with limited room for major producers such as Saudi Arabia to boost production.U.S. West Texas Intermediate crude futures gave up earlier gains when it slid 44 cents, or 0.4%, to $111.32 a barrel.Brent crude futures for August dropped 61 cents, or 0.5%, to $117.37 a barrel, also reversing an earlier gain. The August contract will expire on Thursday and the more-active September contract was at $113.14, down 66 cents, or 0.6%. Both WTI and Brent were up 2% earlier this week as concerns over tight global supply outweighed fears of that demand may slow in a potential future recession. The agreement by the Group of Seven economic powers to explore ways to cap the price of Russian oil also underpinned the market sentiment. Saudi Arabia and the UAE are viewed as the only two members of OPEC with the ability to make up for lost Russian supply, however both countries have noted they were producing near maximum capacity.