Oil prices increased slightly in Asian trade on Monday as traders looked for more details on rescue efforts for Iran’s President following a helicopter crash.
Crude prices were holding onto some of the gains they made the previous week due to growing demand for the commodity in China, a major importer, and the possibility of interest rate cuts in the United States.
US Strategic Petroleum Reserve Purchase Boosts Market Sentiment
The announcement by the US government that it had bought roughly 3.3 million barrels of oil to help replenish the Strategic Petroleum Reserve also cheered the markets.
By 22:08 ET (02:08 GMT), WTI crude futures increased 0.2% to $79.70 a barrel. While Brent crude futures expiring in July increased 0.3% to $84.19 a barrel.
Bad weather over the weekend caused a helicopter carrying Iranian President Ebrahim Raisi or his foreign minister to crash in mountainous terrain, according to media reports.
Rescue operations were started, and according to some Iranian officials, Raisi’s life might be in danger (Reuters).
Raisi was considered a potential candidate for the role of supreme leader of Iran. The most powerful position in the oil-producing country.
After Israel and Iran launched strikes on one another earlier this year. Tensions in the Middle East have been simmering as a result of the helicopter crash and the uncertainty surrounding Raisi’s fate.
Israel’s ongoing offensive against Gaza. Which the nation continued over the weekend, has also drawn criticism from Iran on numerous occasions.
An important factor supporting oil prices has been the worry that the Middle East’s ongoing unrest may affect the region’s oil supply. Which has kept Brent trading easily above $80 for the majority of 2024.
Due to a number of impending clues regarding the US economy and interest rates this week, oil markets remained cautious.
This week is when the Federal Reserve’s late-April meeting minutes and several Fed officials’ speeches are due.
Prior to the June 1 meeting of the Organisation of Petroleum Exporting Countries and their allies (OPEC+), markets were also tense. All information regarding the cartel’s intentions to continue reducing output will be the main focus.