Oil prices rise amid tight market

New York: Oil prices rose in early trade yesterday 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 82 cents to $113.37 a barrel.

While US West Texas Intermediate (WTI) crude futures climbed 69 cents, or 0.6 percent, to $110.97 a barrel, adding to last week’s small gains for both contracts.

A weaker US dollar also sent oil higher yesterday, as that makes crude cheaper for buyers holding other currencies.

Market gains have been capped, however, by concerns about China’s efforts to crush COVID with lockdowns, even with Shanghai due to reopen on June 1.