Oil rates rise on anticipated summer demand, geopolitical tensions
Date
6/10/2024 7:29:24 AM
(MENAFN) On Monday, oil rates surged, buoyed by expectations of heightened demand during the summer season. brent crude, the international benchmark, climbed to USD79.97 per barrel by 10:28 a.m. local time, marking a 0.44 percent increase from its previous closing price. Simultaneously, the American benchmark West Texas Intermediate (WTI) saw a rise to USD75.83 per barrel, up by 0.40 percent from the previous session's close at USD75.53 per barrel.
The impending release of official data on US crude oil and gasoline inventories, scheduled for Wednesday, is poised to offer insights into demand trends within the world's largest oil-consuming nation. Concurrently, concerns about supply have intensified due to a reduction in the number of oil drilling rigs in the US and ongoing geopolitical risks in the Middle East.
Baker Hughes, a prominent oil field services company, reported a decline in the number of oil drilling rigs in the US for the week of May 1–7, with a decrease of 4 rigs compared to the previous week and a notable year-over-year reduction of 64 rigs. Meanwhile, geopolitical tensions in the oil-rich Middle East persist, exerting further influence on oil prices.
Over the weekend, Yemen's Houthi group claimed responsibility for targeting a British destroyer in the Red Sea and two ships in the Arabian Sea. Houthi spokesman Yahya Saree attributed the attacks to retaliatory measures against an alleged Israeli assault on the Nuseirat refugee camp in the central Gaza Strip. The group asserted that it utilized naval and ballistic missiles, as well as drones, to target the vessels Nordeney and MSC Tavishi in the Arabian Sea. These developments underscore the complex interplay of geopolitical factors contributing to fluctuations in global oil markets.
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