{"id":11171,"date":"2024-07-01T06:57:46","date_gmt":"2024-07-01T06:57:46","guid":{"rendered":"https:\/\/roydadnaft.ir\/English\/?p=11171"},"modified":"2024-07-01T06:57:46","modified_gmt":"2024-07-01T06:57:46","slug":"oil-prices-climb-on-summer-demand-optimism","status":"publish","type":"post","link":"https:\/\/roydadnaft.ir\/English\/11171\/","title":{"rendered":"Oil prices climb on summer demand optimism"},"content":{"rendered":"

RoydadNaft – <\/a><\/span>\u00a0Oil prices climbed on Monday, supported by forecasts of a supply deficit stemming from peak summer fuel consumption and OPEC+ cuts in the third quarter, although global economic headwinds and rising non-OPEC+ output capped gains.<\/p>\n

Brent crude futures rose 53 cents, or 0.6%, to $85.53 a barrel by 0729 GMT, while U.S. West Texas Intermediate crude futures were at $82.05 a barrel, up 51 cents, or 0.6%.<\/p>\n

Both contracts gained around 6% in June, with Brent settling above $85 a barrel in the past two weeks, after the Organization of the Petroleum Exporting Countries (OPEC) and their allies, a group known as OPEC+, extended most of its deep oil output cuts well into 2025.
\nThat led analysts to forecast supply deficits in the third quarter as transportation and air-conditioning demand during summer draw down fuel stockpiles.<\/p>\n

On Friday, the Energy Information Administration’s (EIA) reported that oil production and demand for major products rose to a four-month high in April, supporting prices.
\n“We continue to hold a supportive view towards Brent, although there are concerns around demand, such as U.S. gasoline demand and Chinese apparent demand,” ING analysts led by Warren Patterson said in a note.<\/p>\n

Factory activity among smaller Chinese manufacturers grew at the fastest pace since 2021 due to overseas orders, a private index showed, even as a broader survey indicated weak domestic demand and trade frictions had led to another industrial sector contraction. China is the world’s no.2 consumer and top crude importer.<\/p>\n

Hopes of an interest rate cut by the U.S. Federal Reserve and rising geopolitical concerns in Europe and between Israel and Lebanon’s Hezbollah have also kept a floor under prices, IG analyst Tony Sycamore said in a note.<\/p>\n

WTI’s recent rally may extend towards $85 a barrel if prices remain above the 200-day moving average at $79.52, he said.<\/p>\n

Traders are watching out for the impact from hurricanes on oil and gas production and consumption in the Americas.<\/p>\n

The Atlantic hurricane season started with Hurricane Beryl on Sunday. Beryl, the earliest Category 4 hurricane on record, headed toward the Caribbean’s Windward Islands where it is expected to bring life-threatening winds and flash flooding on Monday, the U.S. National Hurricane Center said.<\/p>\n

Updated on