Oil prices rise on supply concerns, signs of financial growth

(MENAFN) Oil prices experienced an uptick during early Asian trading on Thursday, driven by concerns over potential supply shortages as major producers continue to implement production cuts. Additionally, indications of economic growth in the United States, the world's largest oil consumer, further bolstered market sentiment.

In terms of price action, Brent crude futures for June delivery saw an increase of 15 cents, equivalent to 0.2 percent, settling at USD89.51 per barrel by 0037 GMT. Similarly, US West Texas Intermediate crude futures for May delivery also saw a rise of 15 cents, or 0.2 percent, reaching USD85.59 per barrel.

Both the June contract for Brent crude and the May contract for West Texas Intermediate have witnessed gains over the past four consecutive days, culminating in Wednesday's closure at the highest levels seen since the end of October.

The surge in oil prices was attributed to several factors, including Ukrainian attacks on Russian refineries, which resulted in a reduction in fuel supplies. Furthermore, concerns arose regarding the potential expansion of the conflict in Gaza between Israel and Hamas to involve Iran, thereby raising apprehensions about disruptions to oil supplies in the Middle East region.

Overall, these developments have contributed to market volatility and underscored the delicate balance between supply and demand dynamics in the global oil market. Investors remain vigilant as geopolitical tensions and production dynamics continue to influence oil prices in the foreseeable future.

MENAFN04042024000045015682ID1108058112