Oil prices rose 4% as US gasoline prices hit record highs

Oil prices rose nearly 4% on Friday as U.S. gasoline prices hit record highs, and China is poised to reduce Russia’s oil supplies to pandemic sanctions and investors as the EU imposes sanctions on Russia.

Brent crude futures rose $ 4.10 or 3.8 percent to $ 111.55 a barrel. US West Texas Intermediate (WTI) crude rose $ 4.36 or 4.1 percent to $ 110.49.

This is WTI’s highest closing since March 25 and its third consecutive week of gains. Brent crude fell for the first time in three weeks.

US gasoline futures hit record levels last week after inventories fell for the sixth week in a row. This has led to a crackdown on petrol, which is a measure of refining margins, the highest level since April 2020 when the WTI closed in negative territory.

“There has been no increase in (US) gasoline reserves since March,” said Robert Yeger, executive director of Mizuho Energy Futures.

Another measure of refining margins, including US 3: 2: 1 crack spread, gasoline and diesel, rose to record levels, according to May 2021 refinement data.

U.S. gasoline prices hit record highs on Friday, at $ 4.43 per gallon for gasoline and $ 5.56 per gallon for diesel, according to auto club AAA.

Oil prices have been volatile over fears that EU sanctions on Russia could lead to a supply crunch, but also put pressure on fears that a revival of the COVID-19 outbreak could dampen global demand.

Analysts at Rystad Energy said, “If full EU sanctions are enforced, Russian oil could go up to about 3 million bpd offline, which would completely disrupt and eventually divert global trade flows, further hurting markets.” There may be panic attacks and panic attacks. Price volatility. Dixon.

This week, Moscow imposed sanctions on several European energy companies, raising concerns about supplies.

In China, where officials have pledged to support the economy, Shanghai will begin easing coronavirus traffic restrictions and store openings this month, city officials said.

“Crude oil prices have risen and risk assets have risen again on optimism that the Kovid situation in China will not worsen,” said Edward Moya, senior market analyst at data and analytics firm OANDA.

Global stock markets US and European stock indices rose after a week of volatile trading.

Falling oil prices this week, inflation and high interest rates have pushed the dollar to a 20-year high against the basket of currencies, making it more expensive to buy oil in other currencies.

The European Union says it has made significant progress in resuming nuclear talks with Iran. The US praised the EU’s efforts, but said no agreement had been reached and that it was uncertain whether that would happen.

Analysts say an agreement with Iran could add another 1 million bpd to the market.

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