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Brent crude rose $1.23, or 1.1%, to $115.36 a barrel by 1110
GMT.
The U.S. West Texas Intermediate (WTI) crude contract for July,
which expires later on Tuesday, rose $1.57, or 1.4%, to $111.13.
The more active WTI contract for August was up $1.90 at $109.89.
UBS analyst Giovanni Staunovo said that despite concerns over
economic growth, latest data on flight activity and mobility on
U.S. roads continues to show solid oil demand.
"We expect oil demand to improve further, benefiting from the
reopening of China, summer travel in the northern hemisphere and
the weather getting warmer in the Middle East. With supply
growth lagging demand growth over the coming months, we continue
to expect higher oil prices," he said.
Prices have been supported by supply anxiety after sanctions on
oil shipments from Russia, the world's second-largest oil
exporter, and questions over how Russian output might fall due
to sanctions on equipment needed for production.
"Supply concerns are unlikely to subside unless there is a
resolution to the Russia-Ukraine war, or unless we see a sharp
rise in supply from either the U.S. or OPEC," said Madhavi
Mehta, commodity research analyst at Kotak Securities.
Prospects are receding for successful negotiation of a nuclear
deal with Iran and a lifting of U.S. sanctions on the Iranian
energy sector.
Iran is escalating its uranium enrichment further by preparing
to use advanced centrifuges at its underground Fordow site, a
United Nations nuclear watchdog report seen by Reuters showed.
"Iran’s measures, if correct, likely mean we won’t be seeing a
return of Iranian crude to greater world markets any time soon,"
said OANDA analyst Jeffrey Halley.
Weekly U.S. petroleum inventory data will be delayed by a day
this week because of a U.S. public holiday on Monday, with the
American Petroleum Institute industry data for the week ending
June 17 due on Wednesday and U.S. Energy Information
Administration data scheduled for Thursday.
(Reporting by Bozorgmehr Sharafedinadditional reporting by
Sonali Paul in Melbourne and Koustav Samanta and Isabel Kua in
SingaporeEditing by David Goodman)
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