(New York) Oil prices continued to rise on Monday, spurred by the gradual lifting of health restrictions in Shanghai, tensions over the supply of gasoline, as well as the announcement of Sweden’s application to join the NATO.
Updated yesterday at 4:09 p.m.
The price of a barrel of Brent from the North Sea for delivery in July ended up 2.41%, at 114.24 dollars.
As for the American West Texas Intermediate (WTI), with maturity in June, it gained 3.35%, to 114.20 dollars, its highest level for almost two months (March 25).
The escalation of black gold is linked to “a combination of factors”, explained Matt Smith of Kpler.
For the analyst, it was the announcement of Sweden’s forthcoming application for membership of NATO (North Atlantic Treaty Organization) which completed the propelling of oil into positive territory.
This exit, which arouses “concern” on the part of Moscow, according to the spokesman of the Russian presidency, Dmitry Peskov, added to other forces which had already played on the nerves of the operators.
“It seems that we are approaching a form of embargo” of the European Union (EU) on imports of Russian oil, underlined Matt Smith.
Hungary remains opposed to the embargo project as it stands and is calling for substantial financial aid to accompany it in the withdrawal of Russian oil. The discussions will continue, said Monday the head of European diplomacy, Josep Borrell.
Last boost to oil prices, the persistent tensions in the market on the supply of refined products, in particular gasoline.
Winter and early spring were marked by a surge in the price of distilled products such as heating oil and diesel, due to heating needs. But “now the market is focused on the summer car travel season,” said Stephen Schork, analyst and author of the Schork Report.
On Monday, the price of regular gasoline in the United States broke a new record, at 4,483 dollars per gallon (3.78 liters).
This pressure on gasoline comes in the middle of a maintenance period for many refineries in the United States and Europe, which limits capacity, while reserves of refined products are already significantly below their long-term average.
In some regions, particularly in the eastern United States, reserves are at their lowest for ten years.