London — Oil prices rose on Tuesday due to high summer fuel demand, but supply remains tight due to sanctions on Russian oil after the invasion of Ukraine.
Brent crude rose $ 1.61 (1.4%) to $ 115.74 a barrel by 0825 GMT.
July US West Texas Intermediate (WTI) crude, which expires later on Tuesday, rose $ 2.29 (2.1%) to $ 111.85. The more active WTI deal in August rose $ 2.48 to $ 110.47 a barrel.
UBS analyst Giovanni Staunovo said the latest data on US road flight activity and mobility continue to show strong oil demand, despite concerns about economic growth.
“Oil demand is expected to improve further, benefiting from the resumption of China, summer trips in the Northern Hemisphere, and warming weather in the Middle East. Supply growth will drive demand growth in the coming months. We are lagging behind and expect oil prices to continue to rise. “
Post-sanctions supply instability on oil transport from Russia, the world’s second-largest oil exporter, and questions about how sanctions on equipment needed for production will reduce Russia’s production prices raise prices I have supported it.
“Unless the Russian-Ukraine war is resolved, or if supply from the US or OPEC surges, supply concerns are unlikely to subside,” said Madabi Meta, a commodity research analyst at Kotaku Securities. ..
Successful negotiations on a nuclear deal with Iran and the prospect of lifting US sanctions on Iran’s energy sector are receding.
Weekly US oil inventory data will be delayed by one day this week due to Monday’s US holidays. Industry data from the American Petroleum Institute for the week ending June 17 is scheduled for Wednesday, and data from the Energy Information Administration is scheduled for Thursday.
By Bozorgmehr Sharafedin