Oil prices climbed on Monday after a double dose of bad news. First, Saudi Arabia raised crude prices for most regions in June, signaling confidence in strong summer demand. Second, fading hopes for a ceasefire in the Israel-Hamas conflict reignited fears of a wider disruption in the Middle East, a key oil-producing region.
Brent crude futures rose 73 cents (0.9%) to $83.69 a barrel, while U.S. West Texas Intermediate (WTI) futures jumped 84 cents (1.1%) to $78.95 a barrel. This comes after a rough week for oil, with both contracts experiencing their biggest weekly losses in three months due to weak U.S. economic data and anticipation of a Federal Reserve rate cut.
Geopolitical tensions also played a role in the price swing. Optimism surrounding a Gaza ceasefire had helped to temper oil prices. However, those hopes were dashed as Hamas hardened its stance and Israel threatened further military action.
This latest development adds another layer of uncertainty to the oil market.
Source: Reuters
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