Oil prices rose on Wednesday on expectations of solid demand and low inventories.
Benchmark Brent crude futures climbed 0.9 percent to $121.69 a barrel, while WTI crude futures were up 1.1 percent at $120.77.
Investors cheered prospects of increased demand from China as Beijing and Shanghai gradually open up following almost two months of COVID-related lockdowns.
Goldman Sachs expects oil prices to surge to nearly $140 a barrel this summer on the back of a resurgence in Chinese demand and limited capacity to ramp production further in the near term.
The U.S. Energy Information Administration (EIA) has projected that U.S. crude production and petroleum demand will both rise in 2022.
Russian oil production could slip 18 percent by the end of next year as the EU imposes a ban on all seaborne imports, the EIA said.
