Spelling Whizz

Exchange

Tax

Cars

German

Global oil prices surge amid supply concerns


global oil prices

WEB DESK: Oil prices surged on Monday, extending last week’s gains as renewed geopolitical tensions in Russia and the Middle East came into focus following weekend attacks.

Brent crude traded near $84 per barrel, marking a 0.88 per cent increase on the day. Last week, Brent saw a 1.45 per cent rise. In contrast, West Texas Intermediate (WTI) crude stood at $78.2 per barrel, experiencing a 1.34 per cent decline.

The uptick in Brent prices comes amidst ongoing geopolitical strife. On Sunday, Ukraine continued its drone attacks on Russian refineries. Additionally, a China-bound oil tanker was struck by a Houthi missile in the Red Sea on Saturday, as reported by Bloomberg.

Despite these incidents, global benchmark Brent remains approximately 9 per cent higher this year, primarily due to supply cuts from OPEC+. However, prices have cooled since mid-April as geopolitical tensions temporarily eased.

Market attention is now shifting to the upcoming OPEC+ meeting on June 1st. Analysts largely anticipate that the group will maintain current production curbs.

Meanwhile, there is growing bearish sentiment among hedge funds. Money managers have reduced their net long positions on Brent for the second consecutive week, reaching the least bullish stance since January.

Additionally, there has been a pullback in bets on rising gasoline prices ahead of the US summer driving season.

Read next: Apple cuts iPhone 15 prices in China

You May Also Like