Oil prices rise 1% thanks to improved demand expectations

Monday, June 17, 2024 - 20:17
Point Trader Group

Oil prices rose by more than a dollar per barrel on Monday, consolidating last week's gains amid optimism among investors about demand growth in the coming months.

Brent crude futures rose at settlement by $1.64, or 1.98%, to $84 per barrel.

US crude futures contracts recorded an increase of about $2, 2.40%, to reach more than $80 per barrel upon settlement for the first time in a month.

Last week, both benchmarks recorded their first weekly gain in four weeks, supported by growing confidence that oil stocks will decline with the start of the summer season in the Northern Hemisphere, amid continued supply cuts from the OPEC+ alliance.

Ole Hansen of Saxo Bank said, “Expectations of strong demand for fuel in the next quarter, the reassurance provided by Saudi Arabia about linking the increase in October to prevailing conditions, and the additional focus on addressing and controlling exceedances in production quotas, are all factors that support prices.”

Data from the Commodity Futures Trading Commission on Friday showed that investors bought back some oil contracts they had sold during the previous week.

Fears continued about the expansion of the war in the Middle East after the Israeli army said yesterday, Sunday, that heavy gunfire had occurred across the border

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