The price of oil rose in early Asian trade on Thursday due to concerns about lower supply and signs of stronger economic growth in the U.S. Major producers maintained their output cuts, while Brent futures for June and U.S. West Texas Intermediate (WTI) futures for May both experienced increases for the past four days, closing at their highest levels since October.
Recent events such as attacks on Russian refineries by Ukraine and concerns about the Israel-Hamas conflict disrupting supplies in the Middle East have contributed to the rise in oil prices. Additionally, Iran’s vow to seek revenge against Israel following an attack that killed high-ranking Iranian military personnel on Monday has also had a significant impact.
A meeting held by top ministers from the Organization of Petroleum Exporting Countries (OPEC) and its allies chose to keep current oil supply policy unchanged on Wednesday, with some countries encouraged to increase compliance with output cuts, while Russia announced a shift towards output cuts rather than export curbs.
Federal Reserve Chair Jerome Powell’s cautious approach to future interest rate cuts, based on recent data showing higher-than-expected job growth and inflation, was seen as positive for oil prices. The comments indicated strong economic growth in the U.S., according to Rob Haworth, senior investment strategist for U.S. Bank’s asset management group. Overall, these factors have contributed to an increase in oil prices in early Asian trade on Thursday.
