SULAIMANI (ESTA) — Oil prices edged higher on Wednesday, buoyed by tight supplies and the prospect of rising demand from the upcoming start of the summer driving season in the United States.
Brent crude futures rose $1.46 to $115 a barrel by 0942. The crude futures gained 0.1% on Tuesday and are up for a fifth day.
U.S. West Texas Intermediate (WTI) crude futures rose $1.52 to $111.3 per barrel. The contract settled down 52 cents on Tuesday.
Reuters reported that global crude supplies continue to tighten as buyers avoid oil from Russia, the world’s second-largest exporter, amid sanctions following its invasion of Ukraine, which Moscow calls a “special military operation”.
“With explicit bans on importing Russian crude in the U.S. and UK, and oil companies reluctant to buy even without formal legal obstacles, self sanctions are still causing supply shortages,” Reuters quoted SPI Asset Management managing partner Stephen Innes as saying.
The crude supply situation is tightening as the U.S. Memorial Day weekend travel is expected to be the busiest in two years, causing fuel demand to rise as more drivers plan to hit the road and shake off coronavirus pandemic restrictions despite high fuel prices, according to Reuters.
