Oil prices edged higher in early Asian trading on Monday, adding to last week’s gains. This increase came as rescuers searched for Iran’s President following a helicopter crash in the oil-producing nation and as the U.S. moved to replenish its national stockpile.
Picture: Oil prices on the rise as seen on VT Markets app.
Brent crude (BRN1!) rose by 26 cents, or 0.3%, to $84.24 a barrel by 0049 GMT. U.S. West Texas Intermediate crude (WTI) (CL1!) gained 15 cents, or 0.2%, to $80.21 a barrel. Brent ended the previous week up about 1%, its first weekly gain in three weeks, while WTI rose 2%, buoyed by improved economic indicators from the U.S. and China, the world’s largest oil consumers.
Also read: Oil poised for weekly gain on rising demand
A helicopter carrying Iranian President Ebrahim Raisi crashed on Sunday, according to an Iranian official. The lives of President Raisi and Foreign Minister Hossein Amirabdollahian were at risk, the official said. Despite this regional volatility, oil prices moved only slightly.
The U.S. government has capitalised on the recent drop in oil prices, announcing late last week that it had purchased 3.3 million barrels of oil at $79.38 a barrel to help refill its Strategic Petroleum Reserve.
Supporting the market last week, signs of easing inflation in the U.S. boosted expectations of interest rate cuts. This could decrease the value of the dollar, making oil cheaper for holders of other currencies.
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As we move forward, market participants will be closely watching the upcoming OPEC+ meeting for any hints of changes in output policy. Additionally, the ongoing geopolitical tensions and U.S. economic data will play crucial roles in shaping the oil market’s direction. Traders should remain vigilant and be prepared for potential volatility in the coming weeks
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