© Reuters. The pattern of oil tanks and a pump jack is shown in front of a rising stock chart, and the “$100” in this illustration was taken on Feb. 24, 2022. REUTERS / Dado Ruvic / Illustration
By Bozorgmehr Sharafedin
LONDON (Reuters) – Oil prices rose on Tuesday as fuel demand was high in the summer while supply remained tight due to sanctions on Russian oil following its invasion of Ukraine.
rose $1.23, or 1.1%, to $115.36 a barrel at 11:10 GMT.
The US West Texas Intermediate (WTI) contract for July delivery, which expires later on Tuesday, rose $1.57, or 1.4%, to $111.13. The more active WTI contract for August was up $1.90 at $109.89.
Despite concerns about economic growth, the latest data on flight activity and mobility on US routes continues to show steady oil demand, said UBS analyst Giovanni Staunovo.
“We expect oil demand to improve further, benefiting from the reopening of China, summer travel in the Northern Hemisphere and warmer weather in the Middle East. Given the growth in supply reduce demand growth in the coming months, we continue to expect higher oil prices,” he said.
Prices have been supported by supply anxiety following sanctions on oil shipments from Russia, the world’s second-largest oil exporter, and questions about whether Russian output could fall such as due to sanctions on equipment needed for production.
“Supply concerns are unlikely to ease unless there is a resolution to the Russia-Ukraine war, or unless we see an increase,” said Madhavi Mehta, commodities research analyst at Kotak Securities. strong in terms of supply from the US or OPEC.”
The prospect of successfully negotiating a nuclear deal with Iran is fading and the US lifts sanctions on Iran’s energy sector.
Iran is beefing up its uranium enrichment capabilities further by preparing to use advanced centrifuges at its underground Fordow site, a report by the United Nations nuclear watchdog reported. Reuters shows.
“Iran’s measures, if correct, mean we won’t see Iranian crude returning to larger markets around the world any time soon,” said OANDA analyst Jeffrey Halley.
Weekly US gasoline inventories data will be delayed by one day this week due to the US holiday on Monday, with the American Petroleum Institute industry data for the week ending June 17 due to enter… Wednesday and U.S. Energy Information Administration data scheduled for Thursday.
