International oil prices fell by more than $2, big inflation may curb demand, but there are new rescues for bulls

On Monday (June 13), international oil prices fell by more than 2 US dollars, and worries that global inflation may slow down economic output further weighed on the market. But traders are closely watching for any possible impact of the multinational labor dispute on oil exports and consumption.

GMT+8 16:27, NYMEX crude oil futures fell 2.00% to $118.26 a barrel; ICE Brent crude futures fell 1.89% to $119.70 a barrel.


U.S. consumer prices rose more-than-expected 8.6 percent in May from a year earlier, official data showed, the largest increase since December 1981, dashing hopes that inflation had peaked. Fears of further interest rate hikes weighed on global financial markets.

"Fears that slowing economic growth will dampen global consumption in the coming months dominated sentiment," Vandana Hari, founder of consultancy Vanda Insights, said in a note.

Oil producers and refiners are scrambling to meet peak summer demand, while traders are closely watching for any possible impact on oil exports and consumption from labor disputes in Libya, Norway and South Korea.

Statoil and employees have agreed in principle to a new wage deal that temporarily avoids strikes at nine fields that could affect the country's oil output, employers and unions said on Sunday (June 12). Unions Safe, Industri Energi and Lederne have said about 845 of the roughly 7,500 workers on the offshore platform plan to strike from June 12 if annual pay talks with employers fail.

The Norwegian Oil and Gas Association (NOG), an oil industry lobby group, had said the strike "could affect" production, but declined to say how much. Norway produces more than 4 million barrels of oil equivalent per day, half from crude oil and other liquid fuels and half from natural gas, making it a major global energy supplier.

A strike by truckers in South Korea has cost the key industrial sector more than $1.2 billion in lost production and unfinished deliveries, the government estimated on Monday. Four rounds of talks with the government have failed to reach a compromise, as cargo truck drivers Solidarity are protesting soaring fuel prices and demanding a guaranteed minimum wage.

Mohammed Aoun, the minister of oil and gas in the Government of National Accord, said Libya is currently cutting oil production by more than 1.1 million barrels per day due to the closure of key export fields and ports.