RIYADH: Oil prices rose in Asian trading on Monday, reversing a weak start, as a rebound in Chinese demand and a weaker dollar bolstered a market shaken by the possibility of further US interest rate increases.
Futures for Brent crude rose 24 cents, or 0.29 percent, to $83.02 per barrel at 10:30 a.m. Saudi time on Tuesday, after falling earlier in the day.
Futures on West Texas Intermediate crude rose 23 cents, or 0.30 percent, to $76.91 per barrel.
Limits on oil drilling in Alaska and the Arctic Circle are on Biden’s agenda.
Reports from the Associated Press on Sunday quoted an administration official as saying that Vice President Joe Biden would prevent or limit oil drilling in 13 million acres of Alaska and the Arctic Ocean.
Since Biden’s administration has not yet decided whether or not to approve ConocoPhillips’ massive Willow oil project in northwest Alaska, this reported move comes as a surprise.
The Associated Press reports that there are two stages to the plan. Biden has already announced that he will close off federal waters in the Arctic Ocean, preventing oil exploration in an area covering nearly 3 million acres.
The report, citing an administration official, continues by saying that new regulations will be drafted for the National Petroleum Reserve in Alaska, which covers over 13 million acres. Special Areas of Concern include Teshekpuk Lake, Utukok Uplands, the Colville River, Kasegaluk Lagoon, and Peard Bay.
Even though the oil and gas industry and state officials are on board with ConocoPhillips’ Willow project because of the jobs it will create, environmental groups are opposed to the project because they believe a rapid transition away from fossil fuels is necessary to effectively combat climate change.
YPF, an Argentine oil company, hopes to double output within the next five years.
According to the company’s CFO, YPF, Argentina’s state oil company, plans to increase oil production by 100% and natural gas production by 30% over the next five years.
During an event in New York commemorating YPF’s 30th anniversary of trading on the New York Stock Exchange, CFO Alejandro Lew stated that the company expects oil production to increase by 8 percent this year and natural gas output to increase by 3 percent.
Lew said, “We still feel very conformable with our achievement,” and that YPF is “in a good position to continue the acceleration of the monetization of Vaca Muerta resources.”
Vaca Muerta, a massive shale formation in Argentina, is largely responsible for the country’s anticipated increase in oil and gas production.
Pablo Gonzalez, YPF’s chairman, has stated that the company is interested in forming partnerships to develop the Palermo Aike reserves located in southern Argentina.
According to the government-owned firm, the formation could hold as much as 6.6 million barrels.
