Global oil prices drop as Norway restarts production

WEB DESK: Global oil prices dipped on Tuesday after a surge the previous day, which was driven by production halts at Norway’s Johan Sverdrup oilfield.

However, investors remained on edge, worried about a potential escalation in the Russia-Ukraine conflict.

Brent crude for January delivery was down slightly by 7 cents (0.1 per cent) at $73.37 per barrel as of 0119 GMT. Similarly, US West Texas Intermediate (WTI) crude for December delivery fell by 7 cents (0.1 per cent) to $69.23 per barrel, with the more active January contract also down by 4 cents (0.1 per cent) to $69.21.

Both oil benchmarks had surged by more than $2 a barrel on Monday.

“Some traders adjusted their positions after Monday’s strong rise,” said Toshitaka Tazawa, an analyst from Fujitomi Securities. “But investors remained cautious, closely watching how the Russia-Ukraine situation evolves after this weekend’s developments.”

In oil trading, investors began moving towards the January WTI contract with the December contract nearing expiration on Wednesday.

WTI entered a state known as “contango” for the first time since February, meaning the January contract was trading at a higher price than the December one—a sign that concerns over supply shortages were beginning to ease.

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