Oil prices increased at the start of the week as investors tightened their purse strings as fears about global growth were exacerbated by product markets and a weaker dollar.
As West Texas Intermediate surged toward $111 a barrel, it has gained for four weeks in a row, the longest streak since February.
Gasoline and diesel prices have reached new highs ahead of the start of the US driving season, which begins in roughly a week. Money managers’ bullish crude bets have also surged.
Saudi Arabia hinted over the weekend that it will continue to support Russia’s participation in the OPEC+ producer group, undercutting US efforts to isolate Russia over its invasion of Ukraine. The kingdom hopes to negotiate an agreement with OPEC+, which includes Russia, according to Prince Abdulaziz bin Salman.
Oil prices have risen this year as a result of increased demand and the worldwide fallout from Russia’s invasion.
Energy costs have risen, prompting central banks to hike interest rates and raising investor fears of a faltering economy.
To combat Covid-19 breakouts, China has enacted a series of strict lockdowns, damaging Asia’s greatest economy.
China continues to be a mixed bag. As part of their efforts to end the deadly pandemic in Beijing, Shanghai officials have established criteria to classify parts of the commercial hub as low-risk for Covid-19. However, the number of cases reported is at an all-time high, raising fears of a lockdown in the capital.
A weakening dollar may have lifted crude’s price, making the commodity cheaper for holders of foreign currencies.
After a 1.4 percent decrease last week, the Greenback dipped on Monday for the first time since November 2020.
