Oil rises slightly on Monday

Oil rose slightly after a weekly decline, reflecting market adjustment to OPEC+ decision to increase supply, traders await industry reports and the Federal Reserve’s interest rate decision, Bloomberg reported.

Brent hovered around $80 per barrel, down 2.5 per cent last week, while West Texas Intermediate (WTI) neared $76.

Due midweek, monthly reports from OPEC+ and the International Energy Agency (IEA) will provide insight into the sector’s status. Moreover, the Federal Reserve’s decision amid strong economic data and persistent inflation concerns impacts market sentiment. Some investors rethink reactions to OPEC+ supply plans, mindful of global supply dynamics.

Crude prices fell since April due to weakening demand, leading to reduced net long positions. However, strength is evident in jet fuel markets due to a resurgence in air travel. Geopolitical tensions persist, notably in the Middle East and Europe. Trading volumes may be subdued during Asian hours due to holidays in China and Hong Kong.