Oil Prices Rise by More than 3% on Thursday

Crude oil futures closed higher on Thursday (May 26). In the U.S., as expected, oil demand increased during the Memorial Day holiday. In addition, there are forecasts that U.S. crude oil futures will continue to rise. European Union (EU) members may reach an agreement on sanctions against Russian oil imports.

  • WTI crude futures were up $3.76, or 3.4%, at $114.09 a barrel.
  • BRENT crude futures were up $3.37, or 3.0%, at $117.40 a barrel.

Oil futures closed higher as investors expected the U.S. to face tighter oil supplies. Oil demand tends to increase during Memorial Day when Americans are on the road. Said season begins in late May and lasts through U.S. Labor Day in September.

Markets reacted positively to the EIA report that U.S. crude oil inventories fell by 1 million barrels last week.

Meanwhile, oil markets were buoyed by European Council President Charles Michel’s confidence that EU members can reach an agreement on sanctions against Russian oil. The EU will hold a special meeting on May 30-31 to discuss an embargo.

The depreciation of the dollar is also a positive factor for the oil market. The dollar index against the six major currencies in a basket of currencies fell by 0.22% to 101.8290.

Investors are awaiting the minutes of the June 2 OPEC and OPEC+ meeting and expect OPEC+ to continue to adhere to the original agreement. The U.S. and several oil-importing countries have called on OPEC+ to increase production above current levels.

The Spot Market is Open

Friday, May 27, 2022

Energy
Updated at
USD
Price

Change

%Change
Crude Oil
11.00

114.14

+0.05

+0.04%

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