Oil hit a two-month high on tight supply

Oil hit a two-month high on tight supply

Analysts also noted that oil prices tracked stock growth. And, with the US dollar weakening slightly against a basket of currencies, crude becomes cheaper when bought with other currencies.

After six consecutive days of increases, Brent closed at its highest level since March 25 and WTI since May 16.

“Crude prices rose because the tight oil market is going to hold as the start of the summer driving season will keep US stockpiles on a downward trajectory,” said Edward Moya, principal market analyst at OANDA.

Prices were supported by the large weekly drawdown in US crude inventories, which became known on Wednesday.

“The fundamental backdrop…is supporting prices…and will turn even more bullish once EU sanctions on Russian oil sales are approved by all parties involved,” said Tamas Varga, of PVM Oil.

For his part, the President of the European Council, Charles Michel, expressed confidence that an agreement can be reached before the next Council meeting, on May 30.

Hungary presents itself as an obstacle, as EU sanctions require unanimous support. This country is pressing for some 750 million euros ($800 million) to upgrade its refineries and expand an oil pipeline from Croatia.

Source: Ambito

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