Shafaq News / The prices of Basra Heavy and Intermediate crude oil rose slightly on Monday, following the increase in global oil prices.
The price of Basra Heavy crude oil rose by 4 cents to reach $79.65, while the price of Basra Intermediate crude oil rose by 7 cents to reach $82.75.
According to Reuters, global oil prices ticked up in Asian trade on Monday, extending gains from last week when prices rose nearly 4% on the view that supply was tightening, with the risks heightened by further attacks on Russian energy infrastructure.
Brent crude oil futures for May delivery climbed 32 cents, or 0.4%, to $85.66 a barrel. The April contract for US West Texas Intermediate (WTI) crude was up 40 cents, or 0.5%, at $81.44. The more active May delivery contract for WTI traded 37 cents, or 0.5%, higher at $80.95 per barrel.
This week, investors are eyeing the outcome of the US Federal Reserve's two-day meeting that ends on Wednesday. That will bring more clarity on the timing of interest rate cuts, Tony Sycamore, a market analyst with IG, wrote in a note.
The Fed will likely keep rates unchanged this month, while the possibility of interest rate cuts at the June meeting "is now a coin flip," Sycamore said.
Lower interest rates would stimulate demand in the US, the world's biggest oil consumer, supporting oil prices.
Both benchmark oil contracts posted gains last week despite a dip on Friday. Oil has been rangebound for much of the last month, but on Thursday a bullish demand report from the International Energy Agency sent prices rising to their highest level since November.
The agency, which represents industrialized countries, had strengthened its demand outlook for the fourth time since November as Houthi attacks in the Red Sea drove crude and fuel carriers to divert, reducing the oil accessible to users. For the first time, IEA also predicted a slight supply deficit this year, instead of a surplus.
US fuel demand also supported prices as refineries completed some projects.
As of Friday's close, Brent and WTI futures were up 11% and 13%, respectively, in 2024, as cited by Reuters.