Brent and WTI futures rose due to tension in the Middle East after recording the worst weekly drop in 3 months.
The futures of Petroleum rose on Monday after prospects for a ceasefire agreement in Loop appear scarce, renewing fears that the conflict between Israel and Hamas may continue to spread in the region.
The futures of Brent crude oil were up 77 cents, or 0.9%, at $83.73 a barrel by 1055 GMT, while crude oil futures West Texas Intermediate (WTI) gained 87 cents, or 1.1%, at $78.98 a barrel.
Last week, both futures contracts posted their biggest weekly loss in three months, with Brent falling more than 7% and WTI down 6.8%, as investors weighed weak U.S. data. employment of USA and the possible timing of an interest rate cut Federal Reserve (Fed).
Market responds to renewed tension in Gaza
The geopolitical risk premium for oil prices Petroleum It also softened as talks began for a ceasefire in Gaza.
However, prospects for a deal faded as Hamas reiterated its demand to end the war in exchange for freeing the hostages and Israel appeared set to launch an assault on the southern Gaza Strip, which it has threatened. for a long time. This Monday, the Israeli army asked Palestinian civilians to evacuate Rafah within the framework of a “limited scope” operation.
“News that Israel wants to go ahead and expand its operation into Rafah threatens to derail a potential ceasefire deal and reignite geopolitical tensions in the Middle East, which appeared to be easing,” said Tony Sycamore, market analyst at I.G.to Reuters.
Prospects for higher prices due to greater demand
He Petroleum was also favored by the decision of Saudi Arabia to increase the official sales prices of its crude oil in June to Asiathe northwest of Europe and the Mediterraneanwhich points to strong demand this summer.
In Chinathe world’s largest crude oil importer, services activity remained in expansionary territory for the 16th consecutive month, while new order growth accelerated and business confidence rose solidly, boosting hopes for a sustained economic recovery.
Source: Ambito
