Oil futures rose during Monday’s morning trading following Saudi Arabia’s decision to increase June crude prices for most regions.
Brent crude futures climbed 28 cents to $83.24 a barrel, and US West Texas Intermediate crude futures reached $78.40 a barrel, up 29 cents.
Saudi Arabia has raised the price of its main crude to Asia for the third consecutive month, aiming to stabilise the oil market and prevent a global surplus. Saudi Aramco increased the June official selling price of Arab Light crude for Asian customers by 90 cents to $2.90 a barrel above the regional Oman-Dubai benchmark.
ICE Brent, which fell over 7.3 percent last week due to easing geopolitical tensions, began the new trading week with increased strength, noted Warren Patterson, head of commodities research at ING.
Both futures contracts experienced their sharpest weekly decline in three months last week, with Brent falling over 7 percent and WTI down 6.8 percent, influenced by weak US jobs data and speculation regarding a Federal Reserve interest rate cut.
Geopolitical risk premiums in oil prices have also decreased as talks for a Gaza ceasefire progress. In a sign of potential supply tightening, US energy companies reduced the number of oil and natural gas rigs operating for the second consecutive week, with oil rigs decreasing by seven to 499, the largest weekly drop since November 2023, according to Baker Hughes’ report on Friday.