Oil Prices Rise 2%, Reaching Their Highest Level in Over Two Months
Brent crude futures increased by 1.9%, to $86.6 per barrel, while U.S. West Texas Intermediate (WTI) crude futures gained 2.3%.
Monday marked the third consecutive day of gains for Brent crude, reaching a peak not seen since April 30, and for WTI, the highest level since April 26.
Oil prices rose by 2% on Monday to a two-month high, driven by the anticipated peak in summer consumption in the Northern Hemisphere and concerns that the conflict in the Middle East could escalate and reduce global oil supply.
Brent crude futures increased by $1.6, or 1.9%, to $86.6 per barrel, while U.S. West Texas Intermediate (WTI) crude futures gained $1.84, or 2.3%, to $83.38 per barrel. This marked the third day of increases for Brent, the highest since April 30, and for WTI, the highest since April 26.
The ongoing exchange of fire between Israel and Iran-backed Hezbollah since the start of the Gaza war has raised concerns about a full-scale war breaking out between the two sides. The conflict could potentially draw in Iran, an OPEC member, and its Shiite allies in Iraq, Yemen, and Syria.
The Organization of the Petroleum Exporting Countries (OPEC) and its allies, a group known as OPEC+, have extended most of their oil production cuts until 2025. These cuts have led analysts to forecast supply deficits in the third quarter as transportation and air conditioning demand during the summer deplete fuel reserves.
In the Caribbean Sea, Hurricane Beryl, a major storm, was expected to pass by Jamaica on Wednesday and hit the Yucatán Peninsula on Friday before weakening to a tropical storm and entering the Bay of Campeche on Saturday, where Mexico produces a significant portion of its oil.
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