U.S. crude oil prices climbed on Monday, aiming to rebound from last week's sharp drops, following reports that Israel has instructed Palestinians to evacuate the southern Gaza city of Rafah and Saudi Aramco has increased its official crude prices.
Today's energy prices are as follows:
- West Texas Intermediate June contract: $78.88 per barrel, up by 77 cents or 1%. U.S. crude oil has gained 10% year-to-date.
- Brent July contract: $83.66 per barrel, up by 70 cents or 0.83%. The global benchmark has risen 8.5% year-to-date.
- RBOB Gasoline June contract: $2.56 per gallon, up by 0.27%. Gasoline futures have risen about 22% year-to-date.
- Natural Gas June contract: $2.18 per thousand cubic feet, up by 1.63%. Gas has fallen about 13.4% year-to-date.
Last week, oil prices declined by over 6% as traders reduced geopolitical risk premiums due to fears of war between Iran and Israel, and U.S. crude inventories surged on weaker demand. However, tensions in the Middle East are escalating again after the Israel Defense Forces instructed around 100,000 Palestinians to evacuate Rafah. Efforts to negotiate a ceasefire between Israel and Hamas have once again stalled, with both sides accusing each other of sabotaging a potential deal.
Prime Minister Benjamin Netanyahu of Israel stated on Sunday that Israel would not yield to international pressure to end the conflict in Gaza until Hamas is defeated.
Saudi Arabia has raised the prices of its main crude oil for Asia for the third consecutive month, indicating expectations of strong demand in the region.