Singapore, May 8 (BNA): Oil prices rose slightly on Monday as traders remained cautious despite easing recession fears in the United States, sending prices falling for three straight weeks for the first time since November.
Brent crude futures rose 11 cents, or 0.2 percent, to $75.41 a barrel at 0252 GMT. US West Texas Intermediate (WTI) crude futures rose 12 cents, also 0.2%, to $71.46.
Tina Ting, analyst at CMC Markets, said, “Oil’s recovery comes after energy stocks returned to Wall Street last Friday after the US reported strong jobs data, easing fears about an imminent economic recession that led to a sell-off early in the year. the week”. Reuters reported.
Concerns that the US banking crisis could slow the economy and undermine fuel demand in the world’s largest oil consumer led the Brent index to drop 5.3% last week, while WTI fell 7.1%.
However, a healthy US jobs report for April, a weaker dollar, and expectations of supply cuts at the upcoming meeting of the Organization of the Petroleum Exporting Countries (OPEC) and its allies, collectively called OPEC+, in June helped record indicators rebound by around 4% per day on Friday. .
“Crude prices are trying to stabilize as energy traders wait to see if OPEC+ should signal they are willing to cut production further,” said Edward Moya, an analyst at OANDA.
Goldman Sachs analysts said in a note on Saturday that concerns about near-term demand due to stress in the US banking system, an industrial slowdown and rising global supplies due to limited compliance with OPEC+ cuts are “overblown”.
The investment bank maintained its forecast for the price of Brent crude at $95 a barrel by December and $100 by April. ANZ Research analysts said they believe market focus will now shift from economic concerns to tightening oil supply.
The US is expected to release April consumer inflation figures on Wednesday, which could provide further clues to interest rate movements amid widespread expectations that the US Federal Reserve will pause interest rate hikes.
This week, traders will carefully watch Chinese economic indicators including trade, inflation, lending and money supply numbers for April, as market participants continue to gauge the economic recovery in the world’s second largest oil consumer.
“Crude oil prices may continue to bear a healthy tailwind,” said Teng of CMC Markets.