Crude prices are still on the rise, as investors remain focused on global supply dynamics in Eastern Europe and North Africa.

Concerns of supply shortage were not outweighed by possible demand pressures caused by a rise in COVID-19 cases in China and more interest rate hikes.

Volatility continues to dominate the oil market as investors closely monitor the EU proposal to ban imports of Russian oil. The situation has added to the uncertainty, which continues to weigh on investors’ sentiment.

Global commercial crude balances tightened, led by weaker supply from the US and OPEC and demand growth driven by reopening Asian economies.

As expected, the OPEC+ agreed on an additional increase of 432,000 barrels per day during June to support the global oil supply.

Last week, crude prices settled mixed in volatile trade, as concerns about the global economic growth and oil demand were offset by EIA data showing an unexpected large draw in US crude oil stocks. 

Concerns about supply shortage amid the ongoing Russia-Ukraine war and rising political tensions continue to dictate oil market sentiments.