RIYADH: Oil prices were steady on Monday after a softer dollar and supply cuts from Canada and members of the Organization of Petroleum Exporting Countries and its allies, known as OPEC+. 

Brent crude futures rose 5 cents, or 0.07 percent, to $75.63 a barrel at 12:50 p.m. Saudi time, while US West Texas Intermediate crude was intact at $71.55 a barrel.  

Talks to avert a default on US debt were set to resume in Washington on Monday, as the prospect of a default and the resulting possible economic downturn and cooling of fuel demand continued to spook markets. 

In a report, the International Energy Agency warned of a looming shortage in the second half of 2023 when demand is expected to eclipse supply by almost 2 million barrels per day.  

OPEC says underinvestment could trigger oil market volatility 

OPEC Secretary-General Haitham Al-Ghais said on Monday that underinvesting in the oil and gas sector could cause market volatility in the long term and imperil growth. 

He also said the world needs to focus on reducing greenhouse gas emissions rather than replacing one form of energy with another, stressing that major investments were needed in all relevant sectors. 

“That is the truth that needs to be spoken,” Al-Ghais said at the Middle East Petroleum and Gas Conference in Dubai. 

OPEC estimates that the world needs $12.1 trillion in investments to meet rising oil demand in the long term. 

In late 2022, OPEC+ agreed to cut production to support the market as the economic outlook worsened, hitting prices. 

In a surprise move in April, Saudi Arabia and other members of the alliance announced further oil output cuts of around 1.2 million bpd. 

OPEC+ members are set to meet in Vienna on June 4 to decide on their next course of action. 

Indian Oil Corp. says Middle East deals squeezed out by Russian crude 

The chairman of Indian Oil Corp., the country’s top refiner by capacity, on Monday said he remained committed to term contracts with the Middle East but spot purchases from the region have fallen as more Russian crude has been imported. 

“Spot purchases have gone down because somewhere there has to be a dip to make up for all the Russian purchases,” Shrikant Madhav Vaidya said at the Middle East Oil and Gas Conference in Dubai. 

Vaidya also said Russian cargoes fit the refinery’s specifications and that India’s growing consumption, reaching record levels in March, has left room for more imports. 

(With input from Reuters)