Title: Oil Mixed, Expectations of Tight Market Remain
Feb 06, 2022 11:48PM ET
Oil was mixed in Asia on Monday morning, reversing some earlier losses. Expectations that global supply would remain tight continued as fuel demand increased and investors took little notice of small steps forward in the U.S.-Iran nuclear talks.
At 18:44 ET, Brent crude futures rose 0.31% to $93.56, while WTI crude futures fell 0.17% to $92.15.
Both Brent and WTI crude futures were up more than $2 from the previous Friday, marking the seventh straight week of gains as ongoing concerns over supply disruptions continued to give the black liquid a boost.
The United States had renewed Iran's sanctions waivers the previous week, allowing international nuclear cooperation projects to enter their final phase. If sanctions on Iran were completely lifted, the country could increase oil supplies and contribute to global supply.
Efforts by the Organization of Petroleum Exporting Countries and its allies to meet their targets continue, despite ongoing pressure to increase production more rapidly. In the United States, while the rig count has been rising for a record 18 consecutive months, oil production is still far from the record levels of the pre-COVID-19 era.
Tensions also persist in Eastern Europe, with White House U.S. National Security Adviser Jake Sullivan warning on Sunday that Russia could invade Ukraine in a matter of days or weeks but may still choose the diplomatic route. Russia is the world's second-largest oil exporter.