Oil: buyers set the stage for new rally

On Monday, May 30, following the results of trading, Brent crude oil rose by 1.99% to $121.68 per barrel. Oil prices rose to a two-month high as China eased the quarantine in Shanghai. The price rose to $121.98 per barrel. It was a holiday in the US (Memorial Day), so stock indices were not traded. External noise did not prevent buyers from checking the positions of sellers.

Shanghai said over the weekend it would lift restrictions on businesses and offer tax breaks, while Beijing reopened some public transport. Manufacturers in Shanghai can resume work from June 1. The news supported risk assets, including European equities.

EU countries have agreed on a partial embargo on Russian oil imports. The ban excludes oil that comes through pipelines, allowing dependent states to continue importing. Transportation (import of oil by sea) of Russian oil is prohibited. Germany and Poland will stop importing oil through the Druzhba pipeline by the end of the year. They left a pipe through which they will receive the missing volumes.

Continued growth is expected after the OPEC + meeting, which will be held on June 2. Before a new growth, the price may correct to 115-116 dollars.