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Oil rises in price amid rising tensions in the Gaza Strip, Saudi Arabia's price hike

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On Monday, futures for Brent crude oil for July delivery rose to $83.18 per barrel during trading, UNN reports citing trading data.

According to Bloomberg, as of 19:56, the price of Brent crude oil futures rose by 0.27%.

At the same time, the price of June futures for WTI rose to $78.35 per barrel, adding 0.31%.

Details

Oil futures rose on Monday after Saudi Arabia raised June crude oil prices for most regions, and as the prospect of a quick ceasefire agreement in the Gaza Strip appeared unlikely, reviving fears that fighting between Hamas and Israeli forces will soon resume, Reuters reports.

Last week, both brands posted their biggest weekly losses in three months: Brent fell by more than 7% and WTI by 6.8% as investors weighed weak US employment data and the possible timing of an interest rate cut by the US Federal Reserve.

The prospects for a ceasefire in Gaza faded as Hamas reiterated its demand for a cessation of hostilities in exchange for the release of hostages, and Israel seemed ready to launch a long-overdue offensive in southern Gaza.

"The markets are a little bit tired of the geopolitical risks associated with war," said John Kilduff, partner at Again Capital. - "I think it will take more kinetic activity to move the markets.

According to Kilduff, the news that negotiations between Hamas and Israel are continuing, despite the failure to reach an agreement last weekend, also softened the market's reaction on Monday.

Oil prices were also supported by Saudi Arabia's decision to raise official selling prices for its oil sold in Asia, Northwest Europe, and the Mediterranean in June, signaling expectations of strong demand this summer.

In China, the world's largest importer of crude oil, service sector activity remained in growth territory for the 16th consecutive month, while new order growth accelerated and business sentiment rose steadily, raising hopes for a sustainable economic recovery, the publication writes.

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