Oil firms on tight supply as U.S. driving season looms


Oil prices gained on Monday with U.S. fuel demand, tight supply and a slightly weaker U.S. dollar supporting the market.

Brent crude futures rose 97 cents to $113.52 a barrel while U.S. West Texas Intermediate (WTI) crude futures climbed 80 cents, to $111.08 a barrel, adding to last week’s small gains for both contracts..

A weaker U.S. dollar also sent oil higher on Monday, as that makes crude cheaper for buyers holding other currencies.

However, market gains have been capped by concerns about China’s efforts to crush COVID-19 with lockdowns, even with Shanghai due to reopen on June 1.

Lockdowns in China, the world’s top oil importer, have hammered industrial output and construction, prompting moves to prop up the economy, including a bigger-than-expected mortgage rate cut last FridaY

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.

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