By Gina Lee

Investing.com – Oil was up on Monday morning in Asia as the U.S. peak driving season sees higher 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 in May and ends about Labor Day in September.

Even though there were concerns about rising oil prices affecting demand, the mobility data of TomTom and Google (NASDAQ) shows that the U.S. has more drivers than ever.

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

Due to the fact that crude oil is less expensive for those who have other currencies, a weaker dollar has also helped boost its value.

However, market gains were capped by concerns over China’s effort to crush COVID with lockdowns. The world’s largest oil importer is loosening its lockdowns in Shanghai and cut its last week, signaling that the authorities are supporting a recovery.

The European Union could not reach an agreement to ban Russian oil from its invasion of Ukraine. This would have also prevented oil prices from falling.