By Gina Lee

Investing.com – Oil was in Asia as the upcoming U.S. peak driving season could see higher fuel demand.

Gained 0.63% to $110.71 at 12:26 PM ET (4:26 GMT) and rose 0.54% up to $110.88.

“Oil prices are supported as gasoline markets remain tight amid solid demand heading into the peak U.S. driving season,” SPI Asset Management managing partner Stephen Innes told Reuters.

“Refineries are typically in ramp-up mode to feed U.S. drivers’ unquenching thirst at the pump.”

The peak U.S. driving season typically begins around Memorial Day Weekend on May 30, and ends about Labor Day in September.

Although there are concerns that rising oil prices may reduce demand, data from TomTom or Google on mobility shows that Americans have more road users than ever before.

“High-frequency data suggests demand continues to grow,” ANZ analysts said in a note.

The black liquid also received a boost from a weakening dollar, which makes it cheaper for other currency buyers.

However, concerns about ongoing COVID-19 Lockdowns in China hampered market gains. The world’s largest oil importer is loosening its lockdowns in Shanghai and the People’s Bank of China during the previous week, signaling that the authorities are supporting a recovery.

However, the European Union could not reach an agreement to ban Russian oil from its invasion of Ukraine in February 24, which limited oil’s potential gains.