Oil futures saw an uptick on Monday following Saudi Arabia’s decision to increase June crude prices for most regions. The move, coupled with slim prospects of a Gaza ceasefire deal, reignited concerns about the Israel-Hamas conflict potentially expanding in the oil-producing region.
At 0518 GMT, Brent crude futures climbed by 34 cents, or 0.4%, reaching $83.30 a barrel. Similarly, U.S. West Texas Intermediate crude futures rose to $78.45 a barrel, marking a 0.4% increase.
Saudi Arabia’s decision to raise the official selling prices (OSPs) for its crude sold to Asia, Northwest Europe, and the Mediterranean in June indicated expectations of robust demand during the summer months. Warren Patterson, ING’s head of commodities research, noted that after a 7.3% decline last week due to easing geopolitical tensions, ICE Brent started the new trading week on a stronger note. He emphasized that this move followed Saudi Arabia’s June OSP increases for most regions, reflecting tightening supplies in the current quarter.
In China, the world’s largest crude importer, services activity continued to expand for the 16th consecutive month. Growth in new orders accelerated, and business sentiment rose solidly, fostering optimism about a sustained economic recovery.
