Oil rebounded and volumes were low

On Monday, ICE Brent front month price went 0.9% up, closing at $114.13/b. Due to a public holiday in the US, there was no settlement on NYMEX WTI.

After the high volatility seen last week, the market is back to an undecided state. Fears related to the economic outlook represents a bearish factor on oil price. But oil supply is tight, with restrictions on exports of Russian oil. Prices could jump back above $120/b quickly and be in line with the forecasts made by most financial institutions.

In Libya, oil production climbed back to 700kb/d from 100kb/d. But this figure remains below the 1.2mb/d the country was able to produce earlier this year.

The United States are working with its Western allies to impose a price cap on Russian oil (according to Treasury Secretary Yellen), the plan could be to restrict insurance and financing for Russian oil trading above a price threshold.

Today oil is moving +0.6% higher for ICE Brent.