05 July, 2022
Crude oil futures extended gains on Tuesday as a strike in Norway is expected to disrupt oil and gas output, fanning tight supply worries. The strike is expected to reduce oil and gas output by 89,000 barrels of oil equivalent per day (boepd), of which gas output makes up 27,500 boepd, Equinor has said. Oil output will be cut by 130,000 barrels per day from Wednesday, the lobby had said, corresponding to around 6.5% of Norway's production, according to a Reuters calculation. Overall, the outlook for demand is also at the forefront of investor concerns amid a broad tightening in global financial conditions as the U.S. Federal Reserve fights rampant inflation with rapid rate increases.