Futures for West Texas Intermediate crude rose above $120 a barrel, trading near a three-month high. At a conference in Jordan, the UAE energy minister said the prospect of a surge in demand in China meant that prices could continue to rise. The amount of oil that producers can add to the market is “not very reassuring,” Suhail Al-Mazroui added, highlighting concerns about spare capacity in the oil market.

The comments come after banks, including Goldman Sachs Group Inc. and Morgan Stanley, underscored calls for higher prices in the coming months.

The oil market has maintained its upward momentum this year as the economy has recovered from the pandemic, although Russia’s invasion of Ukraine and a new virus surge in China have led to extreme volatility. Beijing continues to roll back its Covid-19 restrictions as infection rates drop. Last week, OPEC+ increased production more than previously planned, although the group has struggled to meet its targets in recent months.