Oil prices rose to $ 116

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Oil prices rose to $ 116

In the London market, the price of a barrel after noon rose $ 1.80 compared to the previous close, to $ 115.93. In the U.S. market, barrels were traded at $ 2.26 a barrel, $ 111.82, in contracts with delivery deadlines in July, which expire today.

In more active contracts with delivery deadlines in August, they rose $ 2.37, to $ 110.36.

Prices fell at the end of last week

Late last week, oil prices fell sharply as fears of a recession spread among investors after leading central banks began raising key interest rates to curb inflation.

Earlier this week, investors refocused on limited supplies hampered by Western sanctions on Russia over its invasion of Ukraine. Moscow calls the invasion a special military operation. Russia is the second-largest oil exporter in the world, and investors are trying to estimate how much its oil production could be reduced due to sanctions on oil sector equipment.

At this week's summit, European Union leaders intend to keep up the pressure on Russia by announcing work on a new package of sanctions, the draft document showed. "Supply concerns are unlikely to subside if a solution to the Russia-Ukraine war is not found or if the offer of the US or the Organization of the Petroleum Exporting Countries (OPEC) does not rise sharply," said Madhavi Mehta of Kotak Securities.

Problems in agreement with Iran

There are fewer and fewer chances for the successful completion of negotiations on Iran's nuclear program and for the lifting of American sanctions on the Iranian energy sector. Iran is intensifying uranium enrichment and is preparing to use sophisticated centrifuges at an underground facility in Fordow, according to a report by the International Atomic Energy Agency, which Reuters received for inspection.

"If this is true, Iranian measures probably mean that we will not see the return of Iranian oil to larger world markets so soon," said Jeffrey Halley of OANDA. Price support was also provided today by indications of strong demand for fuel in the summer driving season.

Despite concerns about economic growth, the latest data on flights and road mobility in the US continue to show stable demand for oil, said UBS analyst Giovanni Staunovo.