After declining about 6% on Friday and settling on Monday, Oil prices are rising again. This Wednesday, they rose by about $2 due to higher fuel demand due to the summer driving season With continued supply shortages due to Western sanctions on Russia, the world’s second largest oil exporter.
Giovanni Stonovo, an analyst at UBS, noted that despite concerns about economic growth, the latest data on aviation activity and mobility on US roads continue to show Strong demand for oil mentioned Reuters.
On the other hand, oil demand could increase again once China eases COVID-19 restrictions and thanks to the warm weather in the Middle East. As long as sanctions against Russia persist and supply growth is less than demand growth, oil prices will continue to rise.
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Prices of a barrel of Brent and Texas oil today, June 21: How much does it cost and how much does it cost?
On June 21 at 11:21 a.m. ET, Brent crude futures rose $0.97, or 0.85%, to $115.10 a barrel. While American crude West Texas Intermediate (WTI) is up $1.64, or 1.50%, and is trading at $111.20, According to Oil Price Charts, a popular website with more than 150 oil indices and blends all over the world.
You can check prices in real time on the oil price charts portal.
With sanctions on Russian fuel in place, the Organization of the Petroleum Exporting Countries (OPEC) and its allies are seeking to ramp up production to address supply shortfalls; however, In recent months they have failed to achieve their goals.
“Supply concerns are unlikely to subside unless there is a solution to the war between Russia and Ukraine, or unless we see a sharp increase in supply from the United States or OPEC.”said Madhavi Mehta, a commodity research analyst at Kotak Securities, according to Reuters.