May 06, 2024 (MENAFN via COMTEX) --
(MENAFN) In early Monday trading, oil futures saw an uptick, largely influenced by Saudi Arabia's decision to increase crude prices for various regions in June. This move was interpreted as a sign of expected heightened demand during the summer months. Additionally, the dimming prospects for a ceasefire agreement in Gaza between Israel and Hamas reignited concerns about the potential expansion of conflict in the region, further bolstering oil prices.
Brent crude futures rose by 0.3 percent to USD83.24 per barrel, while US West Texas Intermediate crude futures increased by 0.4 percent to USD78.40 per barrel by 0119 GMT.
Saudi Arabia's decision to raise the official selling price for its crude sold to Asia, northwestern Europe, and the Mediterranean in June played a significant role in this price action.
Warren Patterson, head of commodities research at ING, noted that after a decline of over 7.3 percent the previous week due to easing geopolitical tensions, Brent crude oil started the new trading week on a stronger footing. He attributed this to Saudi Arabia's adjustment of the official selling price of its main Arab Light crude for June, citing supply scarcity during this quarter as a contributing factor.
The previous week witnessed the largest weekly loss in three months for crude oil futures contracts. Brent crude fell over 7 percent, while West Texas Intermediate crude dropped 6.8 percent. This decline was attributed to various factors, including weak US jobs data and speculation regarding the timing of potential interest rate cuts by the Federal Reserve.
Overall, the fluctuation in oil prices reflects a delicate balance between supply and demand dynamics, influenced by geopolitical tensions and economic indicators.
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