Oil Prices Rise as Gaza Ceasefire Hopes Dim and Saudi Arabia Boosts Crude Prices
Positive Signs in the Oil Market
Oil futures saw a rise in prices on Monday as Saudi Arabia increased its crude prices for June in most regions. Furthermore, the slim possibility of a Gaza ceasefire deal added to concerns about the Israel-Hamas conflict potentially escalating further in the oil-producing region.
Market Movement
At 1055 GMT, oil futures were up 77 cents to $83.73 a barrel, while U.S. West Texas Intermediate crude futures also saw an increase to $78.98 a barrel, up 87 cents.
Recent Trends and Concerns
Both Brent and WTI futures faced their largest weekly losses in three months previously, with Brent dropping over 7% and WTI down by 6.8%. This was influenced by weak U.S. jobs data and speculation about a potential Federal Reserve interest rate adjustment.
Geopolitical Uncertainty
While discussions for a ceasefire in Gaza were ongoing, the chances of an agreement diminished as Hamas reiterated its demands for peace and Israel prepared for an imminent offensive in southern Gaza. This has heightened concerns about renewed tensions in the Middle East.
Saudi Arabia’s Role
Saudi Arabia’s decision to raise its official selling prices for crude in various regions signifies strong demand expectations for the coming months. This move has also contributed to the positive momentum in oil markets.
Chinese Market Dynamics
China, the largest importer of crude oil globally, continues to show positive signs with expanding service activities for the 16th consecutive month. This growth, along with increased new orders and improved business sentiment, is boosting hopes for sustained economic recovery.
