Futures on US West Texas Intermediate Crude Oil rose for a third straight trading day on Monday, supported by US fuel demand, tight supply and a softer US Dollar, while Shanghai is due to reopen on June 1st after a two-month lockdown that had raised concerns over a sharp growth slowdown.
“Oil prices are supported as gasoline markets remain tight amid solid demand heading into the peak U.S. driving season,” SPI Asset Management managing partner Stephen Innes was quoted as saying by Reuters.
“Refineries are typically in ramp-up mode to feed U.S. drivers’ unquenching thirst at the pump.”
The peak driving season in the US generally begins during Memorial Day weekend (end of May) and lasts until around Labor Day in September.
Mobility data from TomTom and Google had increased in recent weeks, suggesting higher road activity in locations such as the US, despite concerns that rising fuel prices could potentially hamper demand.
Still, oil price gains seemed limited by concerns over China’s efforts to curb COVID-19 spread through lockdown measures.
“COVID-19 lockdowns are a transitory drag on demand in China, although elsewhere demand is holding up well,” ANZ analysts wrote in an investor note.
“We expect industrial activity to pick up, as stimulus measures kick in,” they added.
As of 8:24 GMT on Monday WTI Crude Oil Futures were gaining 0.74% to trade at $111.10 per barrel. Last week the black liquid went down as low as $103.24 per barrel, which has been its weakest price level since May 12th ($102.66 per barrel).
At the same time, Brent Oil Futures were gaining 1.11% on the day to trade at $113.79 per barrel. Last week Brent went down as low as $105.75 per barrel, which has been its weakest price level since May 12th ($104.76 per barrel).
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