Oil prices edged up 1% on Monday with a rise in U.S. gasoline futures and forecasts for oil demand to rise in the second half of the year, while supplies from Canada and OPEC+ declined in recent weeks.
Oil prices, however, were held in check by a stronger dollar and as the market waited for news on the U.S. debt ceiling talks.
Brent futures for July delivery rose by 41 cents, or 0.5%, to settle at $75.99 a barrel.
U.S. West Texas Intermediate (WTI) crude for June delivery rose 44 cents, or 0.6%, to settle at $71.99 per barrel, while the more active July contract , which is now the new front-month, rose 0.5% to settle at $72.05.
U.S. gasoline futures were the biggest price mover, gaining 2.8% to a one-month high of $2.6489 per gallon.
“Gasoline powered today’s upside oil price advance with … the approach of the Memorial Day holiday,” analysts at energy consulting firm Ritterbusch and Associates said in a note.