#OilPricesRise #OilPricesRise: Crude Hits Multi-Week High on Supply Woes and Demand Hopes

– Oil prices extended their upward rally for the third consecutive session on Monday, driven by tightening global supplies and growing optimism over fuel demand from top economies.

Brent crude futures rose 1.2% to $87.40 per barrel, while U.S. West Texas Intermediate (WTI) climbed to $83.15, marking their highest levels in over a month.

Why are prices rising?

1. Supply Disruptions: Attacks on Russian energy infrastructure by Ukraine have knocked out approximately 15% of Russia’s refining capacity. Meanwhile, in the US, lower-than-expected refinery utilization has tightened gasoline and crude stocks.
2. OPEC+ Discipline: Major producers, led by Saudi Arabia and Russia, have confirmed they will extend their voluntary output cuts of 2.2 million barrels per day through June, keeping a tight lid on supply.
3. Strong Demand Signals: Positive economic data from China and the US – the world’s two largest oil consumers – has boosted sentiment. US job growth and Chinese manufacturing activity have exceeded forecasts, suggesting robust fuel consumption.

Impact on Consumers

The rising crude prices are already translating into higher petrol and diesel prices at the pump. Analysts warn that if the rally continues, inflation could be reignited, potentially forcing central banks to delay interest rate cuts.

What next?

Market focus now shifts to the upcoming OPEC+ ministerial meeting and weekly US inventory data. "We expect prices to remain supported in the $85–90 range, but a sudden ceasefire in Ukraine or a US recession could reverse the gains," said a senior energy analyst.