Investing.com– Oil prices rose in Asian trade on Friday and were headed for strong gains in June, as fears of supply disruptions in Russia and the Middle East more than offset worries about slowing demand.
This notion has also seen oil prices rise after data this week showed an unexpected increase in US inventories. Gasoline stocks also increased despite the start of the summer season, which is very busy with travel.
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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 wider war between Israel and Lebanon’s Hezbollah kept markets on edge over disruptions to crude supplies.
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 hinted at other 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 were supported by the cartel which said after a meeting in June it would maintain current production levels to keep prices high until 2024.
