- WTI price gained ground after Saudi Arabia increased the Official Selling Prices (OSPs) for Oil sold to most regions.
- OPEC+ producers are prepared to prolong voluntary output cuts of 2.2 million barrels per day beyond June.
- Oil prices edged up due to concerns about the potential failure of a Gaza ceasefire deal.
West Texas Intermediate (WTI) crude Oil price snaps its losing streak, trading around $78.20 per barrel during the Asian session on Monday. Oil prices increased after Saudi Arabia raised June crude prices for most regions. Saudi Arabia increased the Official Selling Prices (OSPs) for its crude sold to Asia, Northwest Europe, and the Mediterranean in June, indicating expectations of robust demand during the summer season.
Moreover, the Organization of the Petroleum Exporting Countries and its allies (OPEC+) are expected to maintain oil production levels for an additional three months when ministers reassess output allocations on June 1. The OPEC+ producers announced last week that they are prepared to prolong voluntary output cuts of 2.2 million barrels per day (bpd) beyond June if Oil demand fails to recover as anticipated.
On the geopolitical side, the prices of the liquid Gold gained ground due to the concerns about the possibility of a Gaza ceasefire deal being failed. This has renewed supply fears that the Israel-Hamas conflict could escalate further in the Middle East, as reported by Reuters. Hamas reaffirmed its demand for an end to the conflict in exchange for the release of hostages, a condition Israeli Prime Minister Benjamin Netanyahu firmly rejected.
On the demand side, the lower-than-expected US jobs data has reignited hopes for Federal Reserve interest rate cuts this year, influencing the demand side of the equation. Lower interest rates could stimulate economic activity in the United States (US), consequently enhancing the demand outlook for Oil. Furthermore, this sentiment exerts downward pressure on the US Dollar (USD), effectively lowering the cost of crude Oil for countries utilizing alternative currencies.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD retreats toward 1.0850 on modest USD recovery
EUR/USD stays under modest bearish pressure and trades in negative territory at around 1.0850 after closing modestly lower on Thursday. In the absence of macroeconomic data releases, investors will continue to pay close attention to comments from Federal Reserve officials.
GBP/USD holds above 1.2650 following earlier decline
GBP/USD edges higher after falling to a daily low below 1.2650 in the European session on Friday. The US Dollar holds its ground following the selloff seen after April inflation data and makes it difficult for the pair to extend its rebound. Fed policymakers are scheduled to speak later in the day.
Gold climbs to multi-week highs above $2,400
Gold gathered bullish momentum and touched its highest level in nearly a month above $2,400. Although the benchmark 10-year US yield holds steady at around 4.4%, the cautious market stance supports XAU/USD heading into the weekend.
Chainlink social dominance hits six-month peak as LINK extends gains
-637336005550289133_XtraSmall.jpg)
Chainlink (LINK) social dominance increased sharply on Friday, exceeding levels seen in the past six months, along with the token’s price rally that started on Wednesday.
Week ahead: Flash PMIs, UK and Japan CPIs in focus – RBNZ to hold rates
After cool US CPI, attention shifts to UK and Japanese inflation. Flash PMIs will be watched too amid signs of a rebound in Europe. Fed to stay in the spotlight as plethora of speakers, minutes on tap.