Oil rises after Saudi Arabia raises prices

Oil futures rose on Monday after Saudi Arabia raised crude prices in June for most regions and while the prospect of a Gaza ceasefire deal appeared dim, renewing fears that the Israel-Hamas conflict could widen into continuation in the key oil-producing region, News.Az cites. Reuters.

Brent crude futures were up 28 cents, or 0.3 percent, at $83.24 a barrel by 0119 GMT, while U.S. West Texas Intermediate crude futures were up at $78.40 a barrel. barrel, up 29 cents or 0.4%. Saudi Arabia raised official selling prices (OSP) for crude oil sold to Asia, northwest Europe and the Mediterranean in June, signaling expectations of strong demand this summer. “After falling just over 7.3% last week as geopolitical tensions eased, ICE Brent started the new trading week on a stronger footing, opening higher,” said Warren Patterson, head of commodity research ING, in a note. This comes after Saudi Arabia raised June PSOs for most regions amid supply tightening this quarter, he added. Both futures posted their biggest weekly loss in three months last week, with Brent down more than 7% and WTI down 6.8% as investors weighed weak US jobs data and possible timing of a Federal Reserve interest rate cut. The geopolitical risk premium on oil prices also fell as talks for a cease-fire in Gaza are underway. However, the prospects for a deal appeared dim on Sunday as Hamas reiterated its demand for an end to the war in exchange for the release of the hostages, which Israeli Prime Minister Benjamin Netanyahu categorically ruled out. In a sign that supply could be tightening, US energy companies cut the number of oil and natural gas rigs operating for a second week in a row, with oil rigs falling by seven to 499 in the biggest weekly decline from November 2023, Baker Hughes said. in a report on Friday.


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