Investing.com– Oil prices rose in Asian trading on Friday and were headed for big gains in June as fears of supply disruptions in Russia and the Middle East more than offset concerns about a slowdown in Requirement.
That notion also saw oil prices rise after data this week showed an unexpected increase in U.S. inventories. Gasoline stocks also rose despite the start of the busy summer travel season.
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Expiring August oils rose 0.4% to $86.73 a barrel, while oils rose 0.4% to $82.09 a barrel as of 9:43 p.m. ET (01:43 GMT). .
Prices also largely shrugged off pressure from a strong dollar, with attention now turning to key upcoming U.S. inflation data for more economic cues.
Crude is expected to rise in June amid supply risks.
The and contracts were expected to gain more than 6% each in June, as fears of a broader war between Israel and Lebanon’s Hezbollah kept markets on edge over crude supply disruptions.
Ukraine’s attacks on major Russian fuel refineries have also hinted at potential disruptions to oil supplies from Moscow.
Geopolitical conflicts have led traders to attach a higher risk premium to oil prices and have also reinforced the prospect of tighter markets in the coming months, due to oil supply disruptions.
Adverse weather conditions also pointed to further potential supply disruptions, with heavy rains in Ecuador and a potential hurricane on the Gulf Coast.
US producers under investigation for OPEC collusion
The US Senate Budget Committee on Thursday launched an investigation into 14 domestic producers, including Exxon Mobil Corp (NYSE :), Chevron Corp (NYSE:) and ConocoPhillips (NYSE:), regarding possible coordination with the Organization of the Petroleum Exporting Countries (OPEC) in the manipulation of oil prices.
OPEC has cut production several times over the past year to support oil prices, although the move has provided only limited support to crude markets.
But prices have been supported by the cartel, which said after a meeting in June that it would maintain current production levels to keep prices high until 2024.
