Oil Prices Increase Amid Tight Supply

Oil Prices Increase Amid Tight Supply

Oil prices climbed in Asia trading on Friday, rebounding from previous declines amid supply tightness and geopolitical tensions, even though weakened demand in the United States has cast a shadow on the market this week.

Brent crude futures rose $1.61, or 1.6%, to $105.47 a barrel, while US West Texas Intermediate crude futures gained $1.43, or 1.5%, to $97.78 a barrel, Reuters reported.

While signs of softening US demand weighed on oil prices and sent benchmark contracts sliding around 3% in the previous session, tight global supplies continued to keep the market buoyed.

WTI has been pummeled over the past two sessions after data showed that US gasoline demand had dropped nearly 8% from a year earlier in the midst of the peak summer driving season, hit by record prices at the pump.

In contrast, signs of strong demand in Asia propped up the Brent benchmark, putting it on course for its first weekly gain in six weeks.

Demand in India for gasoline and distillate fuels rose to record highs in June, despite higher prices, with total refined product consumption running at 18% more than a year ago and Indian refineries operating near their busiest levels ever. / financial tribune

Publish Date : 2022/07/26