International oil prices rose 5% as US fuel inventories fell and Russian gas exports to Europe dwindled

International oil prices rose by 5 percent on Wednesday (11th). (Reuters)

internationalismoil priceincreased 5% on Wednesday (11th) as US fuel inventories plummeted ahead of the summer travel season, andRussiaLower gas exports to Europe and Russia’s announcement of sanctions on some European gas companies have added to the uncertainty in the global energy priceThe gains reflect the impact of higher-than-expected US inflation data.

Oil prices up 5%

July Brent crude futures rose $5.05, or 4.9%, to $107.51 a barrel; New York crude June futures were up $5.95, or 6%, at $105.71 a barrel.

The US Energy Information Administration (EIA) reported that distillate inventories fell to their lowest level since May 2005. US retail petrol and diesel prices hit record highs as the US summer driving season looms. US domestic demand for both products fell last week, although inventories are dwindling as US refiners ship more products overseas to replace Russian supplies.

Separately, Russian gas shipments to Europe via Ukraine fell a quarter on Wednesday after Ukraine shut down a major gas pipeline, blaming interference from Russian occupying forces. This was the first blockage of gas shipments to Europe via Ukraine since the start of the conflict.

The move has raised fears that similar disruptions could happen in the future at a time when prices have already skyrocketed. Russia on Wednesday announced sanctions on 31 companies based in countries that have imposed sanctions on Russia.

“Oil prices will continue to rise, especially if the EU reaches an agreement to end Russian oil purchases by the end of the year,” said Andrew Lipo, president of Lipo Oil Associates.

Gold rebounds from three-month low

Gold prices resumed gains on Wednesday following US inflation data and a fall in the dollar as investors focused on a modest cooling in consumer price gains.

Spot gold, ranked 11th, closed up 0.77% at $1,852.40 per British Tail; US gold futures closed 0.7% higher at $1,853.70 per British tail.

US consumer price gains slowed in April as gasoline prices retreated from record highs, a sign that inflation may be peaking, though it may remain high for some time and prompt the Fed to try to cool off demand. Allowed to continue raising rates.

The dollar index initially strengthened on inflation data, but then declined 0.1%, helping gold to climb.

“The market saw the data, and then it started selling, selling, selling and gold again, and people thought the data was higher than expected, but not terrible,” said Tai Wong, an independent metals trader. “Will the Fed be affected by this report?” Be more aggressive, but certainly not less aggressive.”

Spot silver rose 1.6% to $21.58 per tail, platinum rose 3.7% to $999.33 per tail and palladium fell 1% to $2,044.17 per tail.

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