#also sycamore sunday IG

[xolbor-art-creator-again]

I'm tempting myself into writing a fic by drawing art for it now

[news-line-today]

Crude Oil Prices Advance Amid Rising Gaza Tensions and Saudi Arabia's Price Hike

In the world of oil trading, Monday saw a climb in futures prices as Saudi Arabia announced an increase in June crude prices for most regions. Concurrently, the possibility of a ceasefire deal in Gaza seemed distant, stirring concerns that the Israel-Hamas conflict might escalate further in this crucial oil-producing area.

Brent crude futures rose by 51 cents, marking a 0.6% increase to reach $83.47 per barrel, while US West Texas Intermediate crude futures also saw a rise, up by 53 cents to $78.64 per barrel, a 0.7% increase.

Last week, both Brent and WTI futures experienced their most significant weekly losses in three months. Brent fell over 7%, and WTI dropped by 6.8%. Investors grappled with weak US jobs data and speculated about the Federal Reserve’s potential interest rate adjustments.

As discussions around a Gaza ceasefire unfolded, the geopolitical risk premium on oil prices somewhat eased. However, hopes for an imminent agreement diminished on Sunday when Hamas reiterated its demand for war cessation in exchange for the release of hostages, a demand Israeli Prime Minister Benjamin Netanyahu swiftly rejected.

Monday brought further tension as Israel’s military urged Palestinian civilians to evacuate Rafah as part of a ‘limited scope’ operation. While the purpose behind this call remains unconfirmed, speculations arose about its relation to a possible ground assault.

Tony Sycamore, an analyst at IG markets, voiced concerns, stating, “News of Israel’s intentions to extend its operation into Rafah risks derailing a potential ceasefire agreement and reigniting Middle Eastern geopolitical tensions, which had shown signs of easing.”

With most long positions in oil cleared last week, the risks now seem tilted towards a rebound in WTI prices, possibly nearing the $80 mark early this week, as suggested by Sycamore.

Additionally, Saudi Arabia’s decision to raise the official selling prices (OSPs) for its crude in Asia, Northwest Europe, and the Mediterranean for June indicates expectations of robust summer demand, further bolstering prices.

Warren Patterson, Head of Commodities Research at ING, noted, “After a decline of more than 7.3% last week due to easing geopolitical tensions, ICE Brent has commenced the new trading week on a stronger note, opening higher.”

This development follows Saudi Arabia’s decision to increase June OSPs for most regions amidst a tightening of supplies this quarter.

In China, the world’s leading crude importer, service activity continued its expansionary trend for the 16th consecutive month. Growth in new orders and business sentiment surged, fueling hopes for a sustained economic revival.

In a potential sign of supply tightening, US energy companies reduced the number of oil and natural gas rigs operating for the second consecutive week. According to Baker Hughes, oil rigs fell by seven to 499, marking the most substantial weekly drop since November 2023.