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Riots halve Libya oil productionMass COVID tests for Beijing’s Chaoyang district US inflation data reinforces fears of further large interest rate hikes

NEW YORK, June 13 (Reuters) – Oil prices rose on Monday in a period of volatile trade as narrow global supplies offset concerns that demand would be offset by rising COVID-19 outbreaks in Beijing and most rising . Crude Brent crude rose 68 cents to $ 122.69 a barrel at 12:13 p.m. EDT (1613 GMT). US crude West Texas Intermediate rose 61 cents to $ 121.28 a barrel. Trade was volatile, with prices falling about $ 3 a barrel earlier. Oil supplies are limited, with OPEC and its allies unable to fully meet the promised production increases due to a lack of capacity in many producers, sanctions in Russia and unrest in Libya that reduced production. read more Sign up now for FREE unlimited access to Reuters.com Register Oil soared in 2022 as Russia’s invasion of Ukraine heightened supply concerns and as demand recovered from COVID lockdowns. Brent hit $ 139 in March, the highest level since 2008. Last week, both oil benchmarks rose more than 1%. “We were struggling with the loss of Russian (oil) so now add an exclamation mark to the situation in Libya,” said Robert Yawger, executive director of the energy contract at Mizuho. On Saturday, the average price of US gasoline for the first time exceeded $ 5 a gallon, according to data from AAA. read more Causing demand concerns, Beijing’s most populous Chaoyang district has announced three rounds of mass testing to quell a “wild” COVID-19 epidemic. read more “We do not know what will happen to China. The mood is sad at the moment,” said Phil Flynn, a Price Futures analyst. Concerns about further interest rate hikes, boosted by US inflation data on Friday showing that the consumer price index rose 8.6% last month, also pushed oil lower. Other financial markets have also declined, as investors worry that the Federal Reserve could tighten policy too aggressively and cause a sharp slowdown. The S&P 500 was well on its way to confirming a bear market. The Fed’s next political decision is on Wednesday. read more In Europe, Francesco Giavazzi, the closest financial adviser to Italian Prime Minister Mario Draghi, said on Monday that European Central Bank interest rate hikes were not the right way to curb rising price hikes. read more Sign up now for FREE unlimited access to Reuters.com Register Report by Stephanie Kelly. additional references by Alex Lawler, Florence Tan and Mohi Narayan. Editing by Kirsten Donovan Editing by Bernadette Baum and David Gregorio Our role models: The Thomson Reuters Trust Principles.