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Oil Gains on Tight Supply

Oil Gains on Tight Supply
Oil Gains on Tight Supply

Oil prices gained on Monday with US fuel demand, tight supply and a slightly weaker US dollar supporting the market, as Shanghai prepares to reopen after a two-month lockdown fueled worries about a sharp slowdown in growth.
Brent crude futures rose 72 cents to $113.27 a barrel, while US West Texas Intermediate crude futures climbed 53 cents, or 0.48%, to $110.81 a barrel, adding to last week's small gains for both contracts, Money.usnews.com reported.
"Oil prices are supported as gasoline markets remain tight amid solid demand heading into the peak US driving season," said SPI Asset Management Managing Partner Stephen Innes.
"Refineries are typically in ramp-up mode to feed US drivers' unquenched thirst at the pump."
The US peak driving season traditionally begins on Memorial Day weekend at the end of May and ends on Labor Day in September.
Analysts said despite fears about soaring fuel prices potentially denting demand, mobility data from TomTom and Google had climbed in recent weeks, showing more people were on the roads in places like the United States.
A weaker US dollar also sent oil higher on Monday, as that makes crude cheaper for buyers holding other currencies.
 

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