Latest data on flight activity and traffic on US roads continues to show solid oil demand despite concerns about economic growth, analyst saysAn oil refinery is seen in this file photograph. Picture: REUTERS
Brent crude rose $1.61, or 1.4%, to $115.74 a barrel by 8.25am GMT. West Texas Intermediate crude for July delivery, which expires later on Tuesday, rose $2.29, or 2.1%, to $111.85. The more-active contract for August was up $2.48 at $110.47 a barrel. “We expect oil demand to improve further, benefiting from the reopening of China, summer travel in the northern hemisphere and the weather getting warmer in the Middle East. With supply growth lagging demand growth over the coming months, we continue to expect higher oil prices,” he said.
“Supply concerns are unlikely to subside unless there is a resolution to the Russia-Ukraine war, or unless we see a sharp rise in supply from either the US or Opec,” said Madhavi Mehta, commodity research analyst at Kotak Securities.