Crude oil prices rose above $67 in Monday morning trade as supply concerns exacerbated with storm-like weather conditions in the Gulf of Mexico and the inconclusive negotiations with Iran.
Weather concerns heightened after advisories that the disorganized area of cloudiness and thunderstorms in the Gulf of Mexico could develop into a hurricane like disturbance, ahead of the hurricane season that usually begins in June.
Though the prospect of Iranian crude supplies served as a momentum killer, as was witnessed last week, wherein crude oil posted weekly losses of around 3 percent, today prices rose, as markets weighed in on the delays and bottlenecks in reaching a final deal with Iran, the third largest producer of crude oil.
Fading Fed-fuelled flare-up in inflationary fears also aided the black liquid’s climb in the new week, after a week that saw a cut down in the bullish bets on the commodity, on wider price pressures.
Sentiment reinforced upon perception that demand surge following easing travel restrictions in Europe and U.S. was bound to offset downbeat fuel consumption numbers from Asian countries impacted by the corona virus second wave.
Upbeat manufacturing and services PMI data from the U.S., as well as the declining covid graph there, supported the positive outlook as markets found solace in economic rebound and surge in demand.
Brent crude for August settlement rose to 67.71 in early trade, after rising almost 2 percent from previous close.
West Texas Intermediate crude for July settlement rose to 64.80 after rallying from Friday’s close of $63.58, posting identical gains.
Oil’s trajectory in the days to come would predominantly be shaped by emerging cues on virus fights, rebound statistics and Iran deal fruition.
The material has been provided by InstaForex Company – www.instaforex.com