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Crude oil recovered part of the heavy losses incurred last week, with the Middle East risk premium returning to the market as Israel prepares to launch a military attack on the city of Rafah, located in the far south of the Gaza Strip, where hundreds of thousands of civilians have taken refuge.
Oil prices rose and then fell throughout Monday's trading amid prospects for a ceasefire in Gaza, before Israel said that the ceasefire proposal accepted by Hamas contained “major gaps.”
“Optimism about a ceasefire between Israel and Hamas has been growing over the past week or so, and this is what has happened.” This was reflected in the sharp decline witnessed last week in oil futures prices. Sevens Research Report said contributing editor Tyler Ritchie Market monitoring.
The gains were also supported by Saudi Aramco raising its official selling prices for June, which analysts considered a possible indication of maintaining production cuts after the second quarter.
The Saudi increases are likely to “pave the way for some bullish forecasts for global oil demand from OPEC's monthly report next week,” and Saudi Aramco may… Paving the way for extension Of production cuts at the next official meeting, Ritterbusch.
Ole Hansen, head of commodity strategy at Saxo Bank, said the price of crude oil rose “due to a combination of renewed concerns in the Middle East adding some premium to prices and Saudi Arabia signaling strong demand after raising prices to Asia.”
Nymex crude (CL1:COM) for June delivery was flat +0.4% to $78.48 per barrel, ending a losing streak that lasted five sessions, while Brent crude for the month of July (CO1:COM) ended its closest month. +0.4% To $83.33 per barrel, the second gain in three sessions.
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Samer Hassan, a market analyst at XS.com, said that “positive signs” were reflected in the Chinese services sector and investor sentiment in the euro zone, which helped raise the outlook for energy demand. Market monitoring.
The Caixin Services PMI fell to 52.5 in April from 52.7 in March, but the index has remained in expansion territory for 16 months. The Wall Street Journal The Sentix investor confidence index for the euro zone also rose to -3.6 in May from -5.9 in April, the best reading since February 2022, according to OANDA.