LONDON (Reuters) – Crude oil futures rose after Saudi Arabia raised June prices to most regions and as prospects for a ceasefire deal in Gaza, which has renewed fears of a widening of the conflict between Israel and Hamas in a key oil-producing region.
At around 11.40am, Brent futures gained 60 cents, or 0.72%, to $83.56 a barrel, while US West Texas Intermediate futures were at $78.79 a barrel, up $68. cents, or 0.87%.
Last week, both futures posted their biggest weekly losses in three months, with Brent falling more than 7% and WTI 6.8%, as the market grapples with weak jobs data. in the United States and the possible timing of a Federal Reserve interest rate cut.
The geopolitical risk premium in oil prices also eased following the start of ceasefire talks in Gaza.
However, prospects for a deal have weakened as Hamas reiterated its demand to end the war in exchange for the release of hostages and Israel appears ready to launch its long-threatened assault on the southern Gaza Strip.
Also supporting crude was Saudi Arabia’s move to raise official selling prices for crude sold in June in Asia, northwestern Europe and the Mediterranean, signaling expectations of strong demand this summer.
(Translated by Camilla Borri, editing by Sabina Suzzi)
