Oil prices edged higher in Asian trading on Monday. This followed gains the previous week, driven by the prospect of interest rate cuts by the U.S. Federal Reserve and increasing demand from major importer China, which boosted the appetite for crude.
The market was further supported by the U.S. government’s announcement that it had purchased approximately 3.3 million barrels of oil to replenish the Strategic Petroleum Reserve.
Brent oil futures, set to expire in July, rose by 0.3 percent to $84.19 per barrel. Concurrently, West Texas Intermediate (WTI) crude futures increased by 0.2 percent to $79.70 per barrel by 22:08 ET (02:08 GMT).
Concerns over potential instability in the Middle East, which could disrupt oil supplies from the region, have been a significant factor supporting oil prices. This has kept Brent trading comfortably above $80 for most of 2024.
However, oil markets remained cautious as investors awaited several key indicators on U.S. interest rates and the economy this week. The minutes from the Federal Reserve’s late-April meeting are due, along with speeches from several Fed officials.
Investors are also on edge ahead of a meeting of the Organization of the Petroleum Exporting Countries and its allies (OPEC+), scheduled for 1 June. Any updates on the cartel’s plans to maintain ongoing production cuts will be closely watched.
Challenger Energy Group plc (LON:CEG) is a Caribbean and Atlantic margin focused oil and gas company, with a range of petroleum assets located onshore in Trinidad and Tobago, and Suriname, and offshore in the waters of The Bahamas and Uruguay.
