SINGAPORE- Oil futures climbed on Monday after Saudi Arabia hiked June crude prices for most regions and as the prospect of a Gaza ceasefire deal appeared slim, renewing fears the Israel-Hamas conflict could still widen in the key oil producing region.
Brent crude futures gained 34 cents, or 0.4 percent , to $83.30 a barrel, while US West Texas Intermediate crude futures were at $78.45 a barrel, up 34 cents, or 0.4 percent .
Saudi Arabia raised the official selling prices (OSPs) for its crude sold to Asia, Northwest Europe and the Mediterranean in June, signaling expectations of strong demand this summer.
“After falling a little more than 7.3 percent last week due to easing geopolitical tensions, ICE Brent has started the new trading week on a stronger footing, opening higher,” ING’s head of commodities research Warren Patterson said in a note.
This comes after Saudi Arabia raised June OSPs for most regions amid a tightening of supplies this quarter, he added.
In China, the world’s largest crude importer, services activity remained in expansionary territory for the 16th straight month, while growth in new orders accelerated and business sentiment rose solidly, boosting hopes of a sustained economic recovery.
Last week, both futures contracts posted their steepest weekly loss in three months with Brent falling more than 7 percent and WTI down 6.8 percent, as investors weighed weak US jobs data and the possible timing of a Federal Reserve interest rate cut.
