Title: Oil Up as Strike in Norway Disrupts Oil and Gas Output

Jul 05, 2022 01:09AM ET

By: AnalysisWatch

Oil prices rose in Asia Tuesday morning on concerns of tightening supplies as a strike in Norway threatened to disrupt oil and gas production.

Brent oil futures were up 0.23% at $113.73 at 01:09 AM ET, while WTI crude futures were up 1.86% at $110.46.

Reuters reported that on Tuesday, Norwegian offshore workers began a strike that will reduce oil and gas production.

The strike is expected to reduce oil and gas production by 89,000 barrels of oil equivalent per day.

According to Reuters, oil production will be cut by 130,000 barrels per day starting Wednesday, or about 6.5% of Norway's output.

Crude oil gained as investors refocused on signs of a tightening market, ANZ analysts said in a note.

Investors are also assessing the demand outlook amid tighter monetary policy from major central banks.

Investors are now also watching Australia's interest rate decision, which is due later today. The central bank is expected to raise rates twice by half a percentage point.

"Oil prices are still struggling to break out of their current recessionary malaise as the market focuses away from inflation to economic despair," Stephen Innes of SPI Asset Management said in a note.

Investors now await U.S. crude oil supply data from the American Petroleum Institute, which will be released later today