Oil prices settle higher amid supply concerns, Brent exceeds $114

Oil prices edged higher when settling transactions today, May 26, amid growing worries about weakening supplies and increased demand with the approach of holidays in the US.

Brent crude futures, the benchmark for July delivery, settled up 0.4% at $114.03 a barrel.

US NYMEX crude for July delivery also rose 0.5% to $110.33 per barrel.

Oil stocks fell by 1 million barrels during the week ending on May 20, with gasoline stocks declining by 500,000 barrels during the same period, while distillate stocks rose by 1.7 million barrels, data from the US Energy Information Administration showed.

Refiners in the US are seeking to hasten processing, which boosted the use of about 93.2% of capacity — the highest level since December 2019, with gasoline supplies remaining very tight as the weekend approaches amid expectations of higher travel rates to celebrate Memorial Day.

Meanwhile, buyers continue to avoid Russian oil supplies for fear of Western sanctions imposed on Moscow in response to the invasion of Ukraine. This has left global supplies tight, given that Russia is the world's second-largest oil exporter.