Oil jumps over 3%; Brent closes above $62

Oil drilling rigs

Oil closed higher today, May 6, supported by signs of increased demand in China, escalating geopolitical tensions in the Middle East, and the European Commission's proposal to target Russian tankers with new sanctions.

Brent crude futures for July delivery rose 3.19%, or $1.92, to close at $62.25 a barrel. WTI crude futures for June delivery rose 3.43%, or $1.96, to $59.09 a barrel.

Israel launched its second airstrike in two days on Sanaa airport in Yemen on May 6, part of a tit-for-tat escalation of military operations between it and the Iran-backed Houthi militia, bringing geopolitical tensions in the Middle East to the forefront once again.

Meanwhile, Chinese markets resumed trading today after an extended Labor Day holiday, with official data showing consumer spending rose 8% year-on-year during the period, a sign of household confidence in the world's second-largest economy.

Furthermore, the European Commission has issued a proposal to include additional individuals and more than 100 Russian oil tankers from the shadow fleet in the 17th package of sanctions imposed on Moscow over its war with Ukraine.