Brent crude futures are up 82 cents, while US West Texas Intermediate crude futures are up 69 cents.
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US West Texas Intermediate crude futures rise 0.6%
Oil prices rose in early trade on Monday, as US fuel demand, tight supplies and a weak dollar supported the market, as Shanghai prepared to reopen after a two-month shutdown, raising concerns about a sharp slowdown in the global economy. the growth.
Brent crude futures rose 82 cents to $113.37 a barrel, while US West Texas Intermediate crude futures rose 69 cents, or 0.6%, to $110.97 a barrel, adding to last week’s small gains for both contracts.
“Oil prices are being supported while gasoline markets remain tight amid strong demand heading for the peak of the US driving season,” said Stephen Innes, managing partner at SBI Asset Management.
“Refineries are usually in a ramp-up mode to meet the massive needs of American drivers at gas stations,” Innes added, the peak driving season traditionally begins on Memorial Day weekend at the end of May and ends on Labor Day in September.
“The high-frequency data indicates continued growth in demand,” ANZ analysts noted in a note.
It is noteworthy that the closure in China, the largest oil importer in the world, is hurting industrial production and construction, which prompted steps to be taken to support the economy, including a larger-than-expected mortgage rate cut last Friday.