WTI crude futures rose above $110.5 per barrel on Monday, building on gains from the past two sessions, as expectations of increased US fuel demand and hopes for demand return in China threatened to pressure an already tight global oil market. US gasoline and diesel prices remained at record levels as the US peak driving season, which traditionally begins on Memorial Day weekend at the end of May and ends on Labor Day in September, looms. Mobility data showed more people were on the roads in places like the US despite high fuel costs. Elsewhere, traders continued to track the Covid situation in China, with Shanghai due to reopen on June 1 while record cases in Beijing kept markets on edge. Investors expect a pick up in Chinese demand on easing restrictions in movement and as stimulus measures kick in. Meanwhile, the EU’s inability to reach a final agreement on banning Russian oil has kept crude prices from rising further.
