(Bloomberg – Oil prices remained at $105/barrel as oil investors balanced higher crude demand with a series of Chinese lockdowns.

The West Texas Intermediate futures ended 0.5% higher Monday and were unchanged in Asian early trade. Diesel margins are at an all time high due to record fuel exports by the U.S. Gulf Coast. Due to the continued shunning Russian cargoes and higher demand from Latin America for fuels, this tightening is a reflection of increased global demand. 

Oil has been grappling with a tumultuous period of trading since Russia’s invasion of Ukraine in late February. The prices fell on Monday as Beijing, Shanghai and others took strict measures to control a Covid-19-related outbreak. It fueled fears over the supply. 

The longest streak of monthly wins since January 2018 saw crude oil rise for the fifth month. Despite this, worries about an economic slowdown and persistently high levels of inflation have continued to shake the markets, making prices susceptible to large swings.  

The bullish structure of backwardation remains where close-dated contracts tend to be more costly than those that are later. The benchmark’s prompt timespread closed at $1.61 a barrel in backwardation on Monday, compared with a high of $3.88 on March 8.

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