A tighter outlook for the crude markets was presented by indicators of reduced stockpiles and disruptions in fuel supply, which caused oil prices to rise in Asian trade on Monday as prospects of an Israel-Hamas ceasefire lessened. Due to growing rumors of a Gaza ceasefire for the Muslim holy month of Ramadan, crude prices dropped last week from four-month highs.
However, China and Russia vetoed a United Nations resolution that the United States had spearheaded on Friday. Oil had also been impacted by a rising dollar. However, the anticipation of tighter supplies in 2024 prevented further falls in crude, and the strength of the U.S. economy also offered a promising outlook for demand.
While West Texas Intermediate crude futures increased 0.6% to $81.11 a barrel, Brent oil futures expiring in May saw a 0.5% increase to $85.90 a barrel. It is anticipated that the Israel-Hamas war will lessen, allaying worries about the Middle East’s geopolitical instability, which might potentially affect the region’s supply of crude oil. In recent months, this idea has been a major factor supporting oil prices.
The forecast for oil supply is still dire. In terms of supply, fewer oil products will be available in the upcoming months due to decreased Russian fuel output as a result of Ukrainian strikes on significant refineries. Nor did the Russia-Ukraine war exhibit any indications of abatement. In addition to rising to four-month highs earlier in March due to the possibility of reduced supply, crude prices have been rising this year.
