At 3:41 p.m. in Abuja, Nigeria (30th May 2022), the Brent Crude July contract was trading at $120.02, up 0.52% on the day. Brent Crude is at its highest level in months, with a nearly $100 per barrel increase since March 2020. WTI was also increasing on Monday, reaching $115.80 per barrel (+0.80%), its highest level since March.

Despite the EU’s failure to reach an agreement among its members on a Russian crude oil ban, crude prices have continued to rise, with Hungary still demanding better terms. While the EU maintains that a deal is still possible, the lack of progress over the weekend was significant.

On the plus side, the formal start of the driving season in the United States began on Monday. While the average national gasoline price reached $4.619 per gallon on May 30, the highest level ever recorded, there appears to be some demand destruction for the fuel, according to GasBuddy data. Weekly U.S. gasoline demand rose by only 0.5% compared to the previous week and is only 1.2% higher than the average of the previous four weeks.

China’s loosened COVID-19 limitations and the UK’s recent oil and gas windfall tax, which some experts and oil corporations believe will hamper new investment in the industry, are other optimistic reasons for oil. In light of the increased tax, BP announced on Friday that it would reassess its projects in the country. Regardless of the long-term consequences of such a tax, it causes market uncertainty.