WTI crude futures held around $114 per barrel on Tuesday after rising for four straight days to the highest close since March 23, as traders tracked developments around a proposed EU ban on Russian oil, a move that would tighten global supply further. On Monday, EU foreign ministers failed to pressure Hungary to lift its veto of a proposed oil embargo on Russia, with Lithuania saying the bloc was being “held hostage by one member state.”
The US oil benchmark has also been rising at a faster pace than Brent in recent sessions, as US gasoline prices surged to record highs on rising demand coupled with restrained refining capacity. US producers are ramping up production in order to replenish inventories that have dwindled in the wake of Russia’s war in Ukraine. Meanwhile, latest data pointed to lower demand from the world’s second-largest economy as China processed 11% less crude oil in April than a year ago due to Covid lockdowns.