Crude Oil Climbed as Traders Weigh Tightness in the Gasoline Market

Oil prices rose as investors weighed tight product markets and a weaker dollar against concerns over global growth.

The WTI trading around $111 a barrel while the Brent is trading around $113 a barrel. Gasoline and diesel prices have rallied to records ahead of the start of the US driving season, which begins in about a week. Money managers have also been boosting bullish crude bets.

In remarks reported at the weekend, Saudi Arabia signaled it will continue to support Russia’s role in the OPEC+ group of producers, undermining US-led efforts to isolate Moscow for its invasion of Ukraine, the Financial Times said. The kingdom was hoping to work out an agreement with OPEC+ which includes Russia, Energy Minister Prince Abdulaziz bin Salman told the newspaper.

“Amid the softer-dollar background and China-reopening trade, it skews favorably for oil,” said Stephen Innes, managing partner at SPI Asset Management Pte as reported by Bloomberg.

Heading into the US summer driving season, the focus will be on a ramp-up in refinery production, he added.

The picture across China remains mixed. In Shanghai, officials have laid out the criteria to categorize parts of the commercial hub as low-risk for Covid-19 as they look to end a two-month lockdown, with no new cases outside quarantine being reported. Beijing, however, reported a record number of cases, reviving concern that the capital may face a lockdown.