FX.co ★ Oil prices rise, Brent hits 2-month high

July futures for Brent on the London ICE Futures exchange by 6:00 p.m. GMT+2 rose by $1.07 (0.9%) to $120.50 per barrel.

The cost of a futures contract for WTI for July at the electronic session of the New York Mercantile Exchange (NYMEX) increased by this time by $1.04 (0.9%) - up to $116.11 per barrel.

At the same time, some analysts believe that the price of Brent may reach $124 per barrel in the near future.

Ole Hansen, director of commodities strategy at Saxo Bank, said that with the reopening of refineries, demand for oil from refineries is likely to increase during a period of severe disruption to global supply chains amid sanctions against Russia. Having risen above the resistance level of $115 per barrel, Brent can now rush to $124.

Shanghai authorities have announced that all manufacturing plants in the city will be able to resume operations from June. Beijing, in turn, said that the spread of coronavirus in the capital of China was taken under control.

The market is also following the negotiations on the imposition of an embargo on Russian oil supplies by European countries. On Sunday, the EU failed to agree on another package of sanctions against the Russian Federation due to Hungary's refusal to support this decision, and consultations will continue this week.