Oil stable on Tuesday
Oil stabilised after experiencing two consecutive days of increases, even amidst heightened tensions in the Middle East following the death of an Egyptian soldier in a clash with Israeli troops, Bloomberg reported.
Egypt’s military confirmed the death of a border guard at the Rafah crossing into Gaza on Monday, which could further heighten tensions with Israel.
The global benchmark Brent remained steady above $83 per barrel, while West Texas Intermediate (WTI) approached $79.
On Wall Street, there’s a move towards the fastest settlement of trades in a century. Additionally, there’s a discussion about the compensation of top talent in the private credit sector and the flourishing business catering to the ultra-rich in Australia. Elon Musk’s xAI has also successfully raised $6 billion to challenge OpenAI.
Oil prices have seen an upward trend this year due to ongoing geopolitical risks and approximately 2 million barrels per day (bpd) output cuts by OPEC+. These cuts are anticipated to continue into the second half of 2024, as per expectations from a meeting held on Sunday. However, prices have experienced a dip since early April due to weakening demand from Asia, leading Brent’s prompt spread to approach a bearish contango structure, indicating an increase in supply relative to consumption.
Investors are also keenly awaiting US fuel demand data post the Memorial Day holiday, which traditionally marks the beginning of the peak summer driving season.
