Ad Banner
Advertisement by Open Privilege
United States

Oil prices rise to a monthly high as demand optimism rise

Image Credits: UnsplashImage Credits: Unsplash
  • Oil prices surged to their highest levels in over a month due to demand optimism.
  • Economic data from China and U.S. consumer sentiment are key factors influencing the market.
  • Geopolitical tensions and supply disruptions also contribute to the volatility in oil prices.

Oil prices have experienced a significant surge, reaching their highest settlement levels in over a month. This rise is largely attributed to growing investor optimism about increasing demand, despite some concerns over U.S. consumer sentiment and upcoming economic data from China.

In early Asian trading on Monday, Brent crude futures saw a slight decline, dropping by 15 cents, or 0.18%, to $82.47 per barrel. Similarly, U.S. West Texas Intermediate (WTI) crude futures fell by 16 cents, or 0.2%, to $78.29 a barrel. This minor dip followed a survey indicating that U.S. consumer sentiment had hit a seven-month low in June, with households expressing concerns over personal finances and inflation.

Despite this brief downturn, both benchmark contracts had recorded nearly a 4% increase during the previous week, marking the highest weekly percentage gain since April. This uptick was driven by signs of stronger fuel demand, which bolstered investor confidence in the energy market.

Economic Data from China

The trajectory of commodity markets for the week ahead is expected to be influenced by economic data from China, the world's largest crude oil importer. Analysts from ANZ highlighted that China's refinery throughput would serve as a key indicator of oil demand. Additionally, figures on retail sales, business investment, industrial production, and house prices would provide a clearer understanding of economic activity within the country.

Last week, data on producer and consumer prices indicated that China was still grappling with deflation. This economic backdrop adds a layer of complexity to the global oil market, as traders closely monitor how these factors will impact future demand.

Market Reactions and Future Outlook

The recent surge in oil prices reflects a broader trend of demand optimism. As the global economy continues to recover from the impacts of the COVID-19 pandemic, energy markets are witnessing increased activity. This is particularly evident in the U.S., where recent data showed higher-than-expected job growth and inflation, suggesting solid economic growth.

Rob Haworth, senior investment strategist for U.S. Bank's asset management group, noted that the Federal Reserve's cautious stance on future interest rate cuts was positive for oil prices. "The comments were positive for oil because they indicated solid U.S. economic growth," he said.

In the Middle East, geopolitical tensions also play a crucial role in shaping oil prices. Iran, the third-largest producer in OPEC, has vowed revenge against Israel for a recent attack that killed high-ranking Iranian military personnel. Additionally, Ukraine's attacks on Russian refineries have further tightened fuel supply, contributing to the upward pressure on oil prices.

As the global oil market navigates these complex dynamics, the outlook remains cautiously optimistic. Investors are closely watching economic indicators from major economies like the U.S. and China, as well as geopolitical developments in key oil-producing regions. With demand expected to rise during the peak summer driving season, the energy market is poised for continued volatility and potential growth.


Ad Banner
Advertisement by Open Privilege

Read More

Finance Singapore
Image Credits: Unsplash
FinanceApril 25, 2025 at 1:30:00 PM

FBM KLCI holds steady amid global market rally

[MALAYSIA] The FBM KLCI ended the morning session slightly higher as investors turned to profit-taking ahead of the weekend, capping off a week...

Economy Singapore
Image Credits: Unsplash
EconomyApril 25, 2025 at 1:30:00 PM

China considers tariff exemptions amid trade war

[WORLD] China is exploring the possibility of exempting certain U.S. imports from its steep 125% retaliatory tariffs, marking the strongest indication yet that...

Culture Singapore
Image Credits: Unsplash
CultureApril 24, 2025 at 9:30:00 PM

How to work with a difficult colleague

[WORLD] Navigating a professional relationship with a colleague who harbours negative feelings towards you can be challenging. However, with strategic approaches rooted in...

Economy Singapore
Image Credits: Unsplash
EconomyApril 24, 2025 at 4:00:00 PM

US-China trade tensions: No negotiations confirmed

[WORLD] China’s Ministry of Commerce on Thursday refuted claims of ongoing trade negotiations with the United States, stating that reports suggesting progress in...

Economy Singapore
Image Credits: Unsplash
EconomyApril 24, 2025 at 2:00:00 PM

Malaysian firms eye Uganda’s oil fields amid shrinking domestic reserves

[MALAYSIA] Malaysian companies have been invited to compete for unexplored petroleum fields in Uganda, as the Southeast Asian nation’s oil and gas sector...

Politics Singapore
Image Credits: Unsplash
PoliticsApril 24, 2025 at 2:00:00 PM

Kaja Kallas, the EU's senior diplomat, deals with Trump's turbulence

[EUROPE] European Union foreign policy chief Kaja Kallas is facing unprecedented challenges as she navigates a rapidly changing geopolitical landscape marked by U.S....

Tech Singapore
Image Credits: Unsplash
TechApril 24, 2025 at 1:00:00 PM

Tesla faces decline in EU sales amid rising competition

[EUROPE] Tesla’s sales in the European Union took another significant hit last month, marking a continued downturn that has raised questions about the...

Economy Singapore
Image Credits: Unsplash
EconomyApril 24, 2025 at 12:30:00 PM

Trump administration weighs auto tariff reductions amid industry pressure

[UNITED STATES] The Trump administration is weighing the possibility of reducing certain tariffs imposed on the automotive industry, which executives have warned could...

Economy Singapore
Image Credits: Unsplash
EconomyApril 24, 2025 at 11:00:00 AM

Hong Kong stocks drop as US rules out unilateral tariff cuts

[WORLD] Hong Kong stocks slipped on Thursday, ending a three-day winning streak, after investor sentiment took a hit following remarks from US Treasury...

Retail Singapore
Image Credits: Open Privilege
RetailApril 24, 2025 at 10:30:00 AM

Zus Coffee overtakes Starbucks in Malaysia amid rapid Southeast Asia expansion

[MALAYSIA] Zuspresso, the operator behind the Zus Coffee brand, is set to expand aggressively in Southeast Asia this year, planning to open nearly...

Economy Singapore
Image Credits: Unsplash
EconomyApril 24, 2025 at 10:30:00 AM

Malaysia’s inflation eases in March amid public cost-of-living concerns

[MALAYSIA] Malaysia’s headline inflation rose at a slightly slower pace of 1.4% in March 2025, easing from 1.5% in February, in line with...

Finance Singapore
Image Credits: Unsplash
FinanceApril 24, 2025 at 10:00:00 AM

FBM KLCI holds steady amid trade war optimism

[MALAYSIA] The FBM KLCI began Thursday’s trading session on a flat note, opening around the 1,500 level as investors cautiously extended gains from...

Ad Banner
Advertisement by Open Privilege
Load More
Ad Banner
Advertisement by Open Privilege