Friday, March 29, 2024 | Ramadan 18, 1445 H
clear sky
weather
OMAN
25°C / 25°C
EDITOR IN CHIEF- ABDULLAH BIN SALIM AL SHUEILI

Oil prices up on geopolitical tensions

1249665
1249665
minus
plus

LONDON: Oil prices rose on Monday, extending vast gains last week prompted by tensions between Iran and the United States, as Washington was set to announce new sanctions on Tehran.


Brent futures were up 11 cents, or 0.17 per cent, at $65.31 a barrel by 0845 GMT. West Texas Intermediate crude was up 40 cents, or 0.7 per cent, at $57.83 a barrel.


Brent racked up a gain of about 5 per cent last week, its first weekly gain in five weeks, and WTI jumped about 10 per cent, its biggest weekly per- centage gain since December 2016.


Global supply may remain tight as Opec and its allies including Russia appear likely to extend their oil cut pact at their meeting July 1-2 in Vienna, according to analysts.


“An extension of Opec+ production cuts through the end of the year seems highly likely given recent price action”, US investment bank Jefferies said in a note.


“The market expects an extension though, and any failure could see oil price gap down. The probabilities favour restraint however,” it added.


Russian Energy Minister Alexander Novak said international cooperation on crude production had helped stabilise oil markets and is more important than ever.


“There is a good example of successful cooperation in balancing the oil market between the Opec countries and non-Opec. Thanks to joint efforts, we today see a stabilisation of world oil markets,” Novak said.


Boosting oil demand, prospects of a near-term interest rate cut by the Federal Reserve aimed at bolstering the US economy have weakened the dollar.


Oil is usually priced in dollars, and a slide in the value of the weaker greenback makes it cheaper for holders of other currencies.


Meanwhile, Baker Hughes said on Friday that US energy companies added an oil rig last week, the first increase in three weeks, bringing the total count to 789. — Reuters


SHARE ARTICLE
arrow up
home icon