ALBAWABA – Oil prices rose on Thursday, as concerns over Russian oil supply and expectations of summer demand in the United States (US) bolstered prices.
Reuters reported hopes that demand for oil in the US will rise in the summer as transportation activities usually peak around this time.
Brent crude futures climbed 0.5 percent, or $0.67, to $74.85 a barrel early Monday, while West Texas Intermediate (WTI) futures rose 0.3 percent, or $0.73, to $70.10 a barrel, according to Reuters.
A clash between Moscow and Russian mercenary group Wagner was averted on Saturday after the heavily armed mercenaries withdrew from the southern city of Rostov.
Fragile market sentiment was likely to cap any price upside, however, Reuters’ experts warned..
Oil fell about 3.6 percent last week on worries that further interest rate hikes by the US Federal Reserve could sap demand, as China's economic recovery disappoints investors.
"The American Automobile Association estimates 43 million motorists will drive 50 miles or more from their homes this Independence Day weekend. That is 4 percent more than 2019," the ANZ analysts told Reuters.
Global gasoline demand grew by 365,000 barrels per day year on year, driven by strong US gasoline data. Consumption hit an eight-week high of 9.4 million barrels per day in the week of June 17, JP Morgan analysts said in a note, as carried by Reuters.
