Oil surged last week ahead of peak US travel demand season

Oil surged last week ahead of peak US travel demand season

 Oil surged last week ahead of peak US travel demand season

Oil prices rose on Friday (May 27), ending the week with a sharp increase ahead of the US Memorial Day weekend, the start of the peak travel season in the country, and as European nations negotiate on whether to impose a complete ban on Russian crude oil.


Ending Friday's session, the Brent oil contract advanced by $2.03 (equivalent to 1.7%) to $119.43 per barrel. The WTI oil contract added 98 cents, or 0.9%, to $115.07 a barrel. Last week, the Brent oil contract jumped 6% and the WTI contract increased 1.5%.


Oil prices are supported by strong fuel demand around the world, with both gasoline and heating oil futures soaring this year.

“The US driving season and strong travel demand have supported oil prices,” said UBS analyst Giovanni Staunovo. With supply growth outpacing demand growth, the oil market is likely to continue its undersupply. Therefore, we remain optimistic about the crude oil price outlook.”


European nations are negotiating an agreement on Russian oil sanctions that will embargo shipments but delay sanctions on pipeline oil to gain consensus from Hungary and other countries. other landlocked members, officials said.

Hungary's opposition to Russian oil sanctions and the reluctance of other countries delayed the implementation of the sixth package of sanctions by 27 EU member states against Russia after the conflict. conflict in Ukraine.

The EU's government envoys could reach an agreement in Brussels on Sunday (May 29) in time for the leaders to ratify it at the Summit on May 30-31.


Phil Flynn, analyst at Price Futures Group, said: “Iranian forces seized two Greek oil tankers on Friday in the Persian Gulf, which has also made investors wary of the possibility of oil tankers being seized. volatility at the weekend”.

Russian President Vladimir Putin told Austrian Chancellor Karl Nehammer that Moscow would meet its natural gas supply commitments.
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