Oil prices broke above $120 per barrel as the market waited for summer demand to pick up

Oil prices continued to extend gains beyond their highest closing price three months ago, as demand for the summer driving season in the United States heated up and the epidemic situation improved
, according to Bloomberg on June 8.

West Texas Intermediate crude futures closed up 0.
8 percent on Tuesday, breaking above $
120 a barrel.
The futures fluctuated
near three-month highs this week as banks including Goldman Sachs and Morgan Stanley highlighted oil prices rising in the coming months.

The American Petroleum Institute API reported on Tuesday that U.
S.
gasoline inventories rose by 1.
82 million barrels
last week, according to people familiar with the matter.
With inventories at their lowest seasonal level in years, this is unlikely to bring much relief
to the tight fuel market.

As the economy bounced back from the pandemic, the oil market maintained its upward momentum
this year.
OPEC+ increased production more than previously planned last week as the pandemic situation improved, though the organization has been working toward its goals
in recent months.

Hans Van Cleef, senior energy economist at ABN AMRO Bank, said: "The focus has shifted from OPEC production increases to a decline in spare capacity, and I find it difficult to see the reason for price declines in the short term".

Price-wise

At 10:35 a.
m.
London time, WTI July futures rose 1% to $
120.
60 a barrel.

Brent crude for August settled up 0.
8 percent at $121.
56 a barrel
.

U.
S.
crude inventories increased by about 1.
85 million barrels last week, while distillate inventories (including diesel) increased by about 3.
38 million barrels
, API said.