Oil Prices Rise Amid Tighter Supply Expectations
In a recent report by Reuters, oil prices surged on Monday, continuing their upward trend. This increase is attributed to expectations of tighter supply from OPEC+ cuts, attacks on Russian refineries, and positive Chinese manufacturing data boosting outlooks for demand.
Brent Crude and US West Texas Intermediate on the Rise
Brent crude saw a 0.3 percent increase, reaching $87.24 a barrel, while US West Texas Intermediate rose to $83.45 a barrel, up 0.3 percent. Trade volumes are expected to be thin due to Easter holidays in several countries.
OPEC+ Production Cuts and Russian Refinery Attacks
Both Brent and US West Texas Intermediate finished higher for the third consecutive month in March. OPEC+ extended production cuts until June, tightening crude supply. Russian refineries faced drone attacks, impacting fuel exports.
Geopolitical Risks and Market Analysis
Energy Aspects analysts highlighted geopolitical risks to crude supply and strong Q2 24 demand fundamentals. European oil demand exceeded expectations, while US oil production dropped in January. China’s expanding manufacturing sector also supported oil demand.
Focus on Global Economic Factors
Investors are monitoring US economic data for signs of potential interest rate cuts by the Federal Reserve. This could impact the global economy and oil demand moving forward.