Oil prices rise marginally in early trade

A weaker dollar, supply cuts from Canada and OPEC+ producers, and investors’ anticipation of the effects of the Group of Seven (G7) nations’ promise to tightly enforce price controls on Russian energy exports all contributed to a little increase in oil prices on Monday.

Brent oil futures had risen 14 cents, or 0.2%, to $75.72 per barrel, while U.S. West Texas Intermediate crude for July delivery, the contract that was more actively traded, had risen 15 cents, or 0.2%, to $71.84 per barrel.

The later on Monday expiring June WTI contract increased 5 cents to $71.60 per barrel.

Investors anticipate the Federal Reserve to maintain rates at its June meeting, which caused the dollar to retreat from a two-month high against a basket of significant peers. currency-denominated commodities are more appealing to investors when the currency is weaker.

Following the closure of a significant portion of Alberta, Canada’s petroleum supply due to wildfires, both oil benchmarks rose roughly 2% last week, marking the first weekly rise in five.

At its annual leaders’ meeting on Saturday, the G7 nations promised to step up their efforts to fight Russia’s evasion of the quotas ‘while avoiding spillover effects and maintaining global energy supply,’ but they made no specific commitments.

The International Energy Agency’s (IEA) Executive Director, Fatih Birol, stated that such improvements are not anticipated to alter the supply situation for crude and oil products and that the organization was for the time being sticking with its analysis.

The IEA foresaw a shortage in the second half, when demand is anticipated to outpace supply by over 2 million bpd, in its most recent monthly report.

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