Oil prices pumped, and Saudi Arabia's increase in crude oil prices indicated that demand is expected to be strong this summer

(1) Oil futures climbed on Monday as Saudi Arabia raised the price of June crude in most parts of the country and the prospects for a ceasefire protocol in Gaza seemed slim, renewing concerns that the Israeli-Hamas conflict could still expand in this important oil-producing region. (2) Brent crude futures pumped 0.5% to $83.40 a barrel; US West Texas Intermediate (WTI) CLc1 pumped 0.6% at $78.57 a barrel. (3) Saudi Arabia raised the official selling price (OSP) of crude oil sold to Asia, Northwest Europe and the Mediterranean in June, indicating that demand is expected to be strong this summer. (4) In China, the world's largest crude oil importer, its service sector activity continued to expand for the 16th consecutive month, while the rise of new orders accelerated and business confidence rise steadily, boosting hopes for a sustained economic recovery. (5) As the ceasefire negotiations in Gaza proceeded, the geopolitical risk premium on oil prices also retreated. However, Hamas reiterated its demand on Sunday to end the war in exchange for the release of the hostages, a demand that Israeli Prime Minister Benjamin Netanyahu flatly refused, and the prospects for a ceasefire in Gaza seem slim. (6) IG market analyst Tony Sycamore said: "Protocol that Israel wants to continue to expand its operations to Rafah, threatens to undermine a potential ceasefire and reignite geopolitical tensions in the Middle East that appear to be easing." ” (7) He added that with most of the oil longing positions already shorter last week, there seems to be a possibility of WTI prices rebounding to $80 at the start of the week. (8) In a sign that supply may be tightening, U.S. energy companies reduced the number of oil and gas rigs for the second consecutive week last week, with oil rigs falling by seven to 499, the biggest weekly decline since November 2023, Baker Hughes said in a report Friday