Oil futures rose today, Monday, after Saudi Arabia raised the price of Arab Light crude for most regions next June and the diminishing prospects of reaching a ceasefire agreement in Gaza, which renewed fears of a widening of the scope of the conflict between Israel and Hamas in the main oil-producing region.

By noon on Monday, Brent crude futures rose 28 cents, or 0.3%, to $83.24 per barrel, and US West Texas Intermediate crude futures rose 29 cents, or 0.4%, to $78.40 per barrel.

Saudi Arabia raised the official selling price for its crude sold to Asia, northwestern Europe and the Mediterranean in June, indicating expectations of increased demand this summer.

Warren Patterson, head of the commodities research unit at ING, said in a note, ‘After declining by slightly more than 7.3% last week due to the decline in geopolitical tensions, Brent crude oil began the new trading week on a stronger basis, and opened higher.’

He added that this comes after Saudi Arabia raised the official selling price of its mai
n Arab Light crude for the month of June for most regions amid scarcity of supplies during this quarterly period.

Source: National Iraqi News Agency