Tensions between Israel and Hamas remain unresolved, creating uncertainty and impacting oil prices. On Monday, crude oil futures saw a rise due to two main factors. On the one hand, Saudi Arabia announced an increase in June crude oil prices for most regions. On the other hand, hopes for a ceasefire in Gaza are fading, raising fears that the conflict between Israel and Hamas will drag on and affect oil production in the region.
Oil prices on the rise
Brent crude futures rose 0.92% to $83.72 per barrel, while U.S. West Texas Intermediate crude futures rose 1.11% to $78.95 per barrel. These increases reflect investor concern about tensions in the region and the price increase announced by Saudi Arabia.
Hopes for Gaza ceasefire deal fading
Despite efforts to reach a ceasefire in Gaza, prospects for an agreement have diminished. Hamas has reiterated its demand to end the war in exchange for the release of hostages, while Israel appears ready to carry out an assault on the southern Gaza Strip. This situation has increased geopolitical tensions in the Middle East and has generated concern in the markets.
Saudi Arabia raises crude oil prices
Saudi Arabia has decided to increase the official sales prices of its crude oil to Asia, northwest Europe and the Mediterranean in June. This decision indicates that strong demand is expected this summer and reinforces oil prices on the international market.
Economic activity in China boosts hopes of sustained recovery
In China, the world’s largest crude oil importer, services activity remained in expansionary territory for the sixteenth consecutive month. Additionally, new order growth accelerated and business confidence rose solidly. These indicators raise expectations of a sustained economic recovery that could boost oil demand in the global market.
