SINGAPORE: Oil prices rose on Tuesday, with Brent topping $70, as optimism grew over the fuel demand outlook during the summer driving season of the United States, the world’s top oil consumer. Prices were also boosted after data from China showed that factory activity expanded at its fastest this year in May. Brent crude futures for August gained 83 cents, or 1.2 percent, to
Russian Deputy Prime Minister Alexander Novak, speaking on Tuesday at the start of the OPEC+ meeting of leading oil producers, said the global economy is recovering.
SINGAPORE (Reuters) -Oil prices rose on Tuesday, with Brent topping $70, as optimism grew over the fuel demand outlook during the summer driving season of the United States, the world's top oil consumer. "While there are concerns over tighter COVID-19 related restrictions across parts of Asia, the market appears to be more focused on the positive demand story from the U.S. and parts of Europe," analysts from ING Economics said in a note on Tuesday. "In the U.S., the summer driving season officially got underway following the Memorial Day weekend, and we have entered this period with gasoline inventories already trending lower, and not too far from a 5-year low for this time of the year."
Shu Zhang
4 minute read
General view of Saudi Aramco s Ras Tanura oil refinery and oil terminal in Saudi Arabia May 21, 2018. REUTERS/Ahmed Jadallah
Top oil exporter Saudi Arabia is expected to slightly increase its July official selling prices (OSPs) of light crude for Asia, as margin weakness and demand uncertainty cap the upside despite stronger crude benchmarks, a Reuters survey showed.
Sources at five Asian refiners on average expected the July OSP for Saudi flagship grade Arab Light to rise by 10 cents a barrel, with their forecasts ranging between no change to an increase of up to 20 cents.
The expected adjustment for Arab Light tracked the price strength in Middle East crude oil benchmarks Cash Dubai and DME Oman, which in May saw their premiums to Dubai swaps up by 14 cents and 8 cents respectively from April.