Samson: Oil prices above $121
8th June, 2022
Oil prices rose on Wednesday, anticipating a decline in US oil inventories, while expectations of strong demand in the upcoming driving season also provided support.
Brent crude futures for August rose 45 cents, or 0.32 percent, to $ 121.02 a barrel by 05:13 GMT, after closing on Tuesday at the highest level since May 31.
US West Texas Intermediate crude for July was at $119.94 a barrel, up 53 cents, or 0.44%, after reaching its highest settlement since March 8 in the previous session.
“The oil market is expected to remain tight as the supply side will continue to tell the story of low inventories, and crude oil inventories are likely to record further drawdowns as the holiday driving season intensifies,” Oanda analyst Edward Moya said in a note.
The World Bank on Tuesday cut its global growth forecast for 2022 by about a third, warning that Russia’s invasion of Ukraine has compounded the damage from the COVID-19 pandemic, and that many countries are now facing a recession.
Meanwhile, global supplies of crude oil and petroleum products remain scarce, pushing prices higher.
