Oil prices are rising .. What is the reason?

Oil prices rose, on Monday, supported by optimism that China will witness a strong recovery in demand, following positive indications that the Corona pandemic has abated in the most affected areas of the country.

Brent crude futures for July delivery rose $2.69 to $114.24 a barrel, an increase of 2.4 percent upon settlement. West Texas Intermediate crude futures rose $3.71, or 3.4 percent, to $114.20 a barrel.

And an official in Shanghai said, on Monday, that the city seeks to reopen on a large scale and allow the resumption of normal life for the population of 25 million people, starting from the first of June, following it was announced that 15 of the 16 neighborhoods in the city did not record injuries outside the quarantine areas.

But according to estimates, closure measures remain in force in 46 cities in China, which negatively affects shopping, factory production and energy use.

And US gasoline futures hit an all-time high on Monday, following falling stocks fueled supply concerns.

And the US Department of Energy stated, on Monday, that stocks in the strategic oil reserve fell to 538 million barrels, the lowest level since 1987.

Oil prices also received some support from optimism expressed by diplomats and officials in the European Union regarding a temporary embargo agreement for Russian oil, despite concerns related to supplies in Eastern Europe.