23 May Oil Prices gain on tight supply
Oil prices gained on Monday with U.S. fuel demand, tight supply and a slightly weaker U.S. dollar supporting the market, as Shanghai prepares to reopen after a two-month lockdown that fuelled worries about a sharp slowdown in growth.
Brent crude futures rose $1.12 or 1% to $113.67 a barrel at 0912 GMT, while U.S. West Texas Intermediate (WTI) crude futures climbed 96 cents, or 0.9%, to $111.24 a barrel, adding to last week’s small gains for both contracts.
The U.S. peak driving season traditionally begins on Memorial Day weekend at the end of May and ends on Labor Day in September.
Analysts said despite fears about soaring fuel prices potentially denting demand, mobility data from TomTom and Google had climbed in recent weeks, showing more people were on the roads in places like the United States.
A weaker U.S. dollar also sent oil higher on Monday, as that makes crude cheaper for buyers holding other currencies.
Market gains have been capped however by concerns about China’s efforts to crush COVID-19 with lockdowns, even with Shanghai due to reopen on June 1.
The European Union’s inability to reach a final agreement on banning Russian oil following its invasion of Ukraine, which Moscow calls a “special operation”, has also stopped oil prices from climbing much higher.
Sorry, the comment form is closed at this time.