Oil just at 2-month high amid global supply concerns

Oil prices dipped slightly at the start of Asian trading on Friday, after hitting a two-month high in the previous session, as investors focused on signs of tight global supply.

Meanwhile, a senior Hungarian official said the country needed 3½ to 4 years to move away from Russian crude and make huge investments to adjust its economy and could not sustain the oil embargo proposed by the EU until there is agreement on all issues.

The European Commission this month proposed new sanctions against Russia for invading Ukraine, but said they needed the unanimous backing of the bloc’s 27 member states. Landlocked Hungary, which relies heavily on Russian oil imports through a pipeline, has so far blocked them.

Brent crude futures fell 11 cents to $117.29 a barrel at 00:08 GMT. WTI crude futures for July delivery fell 19 cents to $113.90 a barrel.

Prices are up about 50% so far this year.

OPEC+ is expected to stick to last year’s oil production agreement at its June 2 meeting and raise July production targets by 432,000 barrels per day, six sources said. ‘OPEC+ to Reuters, pushing back on Western calls for a faster rise to curb soaring prices.