Oil closes more than 1% higher amid demand optimism

Oil drilling rigs

Oil prices closed higher today, May 23, supported by the optimism on demand for crude and as investor continued to assess the developments in the US debt ceiling crisis.

Brent crude futures rose 1.1% to settle at $76.84 a barrel, while West Texas Intermediate crude (WTI) ended at $72.91 a barrel, up 1.2%.

According to a S&P Platts report, global air travel returned to pre-pandemic levels this month, with daily commercial flights totaling 105.68 million during the first two weeks of May, up 20% year-on-year.

A report issued by environmental groups showed that the Royal Bank of Canada became the largest bank to finance oil and gas during the past year, after US-based JP Morgan retreated from the top spot as the world’s largest financier of fossil fuels for the first time since 2019, Oil Price website reported.

Meanwhile, Saudi Energy Minister, Prince Abdulaziz bin Salman, said that the OPEC+ does not manipulate prices. The inaccurate forecasts of the International Energy Agency led to price volatility in the energy market last year and so far, he added.

The American Petroleum Institute report on oil inventories is expected to be issued later today, and the US Energy Information Administration is scheduled to release official data for inventories on May 24, amid expectations that crude stocks will rise by 525,000 barrels.