Oil prices slip after rally last week on Middle East, tight supply

LONDON, Feb 12 (Reuters/Arab News): Oil prices slipped on Monday as investors indulged in some profit-taking after both benchmarks ended last week about 6 per cent higher on Middle East tensions and as refining outages squeezed refined products markets. Brent crude futures were down 82 cents, or about 1 per cent, at $81.37 a barrel, while US West Texas Intermediate crude futures slipped 74 cents, also about 1 per cent, to $76.1 a barrel at 1022 GMT.
Last week, the major forces underlying the rally were the persistent threats to shipping in the Red Sea, Ukrainian strikes on Russian refineries and US refinery maintenance, Tamas Varga of oil broker PVM told Reuters.
This has led to scarce availability of products, particularly in the middle of the barrel, he said.
"These factors have not subsided yet - and for this reason, I believe that what we see at the moment is only a retracement."
Logistics disruptions in the Red Sea continued on Monday, with Yemen-based Houthis saying they had targeted a cargo ship in the Red Sea, which they claimed was American.
Shipping trackers said the Marshall Islands-flagged ship was Greek-owned.
The Houthis have targeted shipping with drones and missiles since November in solidarity with Palestinians in Gaza. The United States has led retaliatory strikes on Houthi missile sites since January.
The Houthis have since said they will target ships not just connected to Israel, but also the US and Britain.
In other supply news, Saudi Arabia's energy minister on Monday said the Kingdom has plenty of spare oil production capacity, after the world's biggest oil exporter announced last month that it would scale back its long-term capacity expansion plans.
In terms of non-OPEC production, however, a potential uptick in US production emerged, with US energy firms increasing oil and natural gas rigs to their highest since mid-December.
Meanwhile, France's TotalEnergies CEO Patrick Pouyanne said he does not see peak oil demand in the numbers, adding "we should exit debate about peak oil demand, be serious, and invest".
Paris-based oil forecaster the International Energy Agency (IEA), which represents industrialised countries, predicts oil demand will peak by 2030, undercutting the rationale for investment.
But OPEC believes oil use will keep rising over the next two decades.
Meanwhile, the Organization of the Petroleum Exporting Countries is in talks with several countries interested in joining the wider alliance known as OPEC+, its secretary-general said on Monday.
The development follows the recent inclusion of Brazil in the alliance. OPEC chief Haitham Al-Ghais told the Emirates News Agency that the names of the interested countries would be disclosed once consultations were finalized.