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Brent oil prices slightly up on hopes of higher demand due to peak season

Brent oil prices slightly up on hopes of higher demand due to peak season

- Currently declining cases in Shanghai prompted hopes for better oil demand in China
 

By Anadolu Agency 

 

ANKARA (AA) - 

 
 

International benchmark Brent crude was trading at $111.43 per barrel at 0638 GMT for a 0.05% increase after closing the previous session at $111.37 a barrel.

Brent oil prices increases mainly due to the start of the peak consumption season in US and other countries due to increased transportation, which will help increase the demand for oil, the situation with global reserves and decoupling from dependency on Russian energy.

American benchmark West Texas Intermediate (WTI) was at $108.98 per barrel at the same time for a 0.82% fall after the previous session closed at $109.89 a barrel.

China's strict COVID-19 measures to curb omicron-driven outbreaks, particularly in the financial hub Shanghai, have taken a toll on the world’s second-largest economy.

Currently declining cases in Shanghai prompted hopes for better oil demand in the country in support of higher oil prices.

The record cut in loan interest rates in China alleviated the economic concerns in the markets to some extent. In Shanghai, which is struggling with the effects of the pandemic, the detection of cases outside the quarantine zones, although the concerns about the measures dominate again, the gradual easing decision prevents the prices from falling.

US commercial crude oil inventories decreased by 0.8% during the week ending May 13, according to data released by the Energy Information Administration (EIA) on Wednesday.

Meanwhile, the European Commission issued new guidance on Tuesday on how EU companies can pay for Russian gas in rubles without violating the bloc's sanctions.

On Wednesday Von der Leyen unveiled a €300 billion ($315 billion) plan to end Europe's reliance on Russian energy. She outlined a three-step plan, called Repower EU, which focuses on the demand side, supply side and accelerating the clean energy transition.

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