On Monday, U.S. oil prices saw an increase, aiming to recover from the significant drops of the previous week. This rise comes in the wake of Israel's evacuation instructions for Palestinians in the southern Gaza city of Rafah and Saudi Aramco's decision to raise its official crude prices.
Current energy prices are as follows:
- West Texas Intermediate (WTI) June contract: $78.88 per barrel, up 77 cents or 1%. Year-to-date, U.S. crude oil has seen a 10% increase.
- Brent July contract: $83.66 per barrel, up 70 cents or 0.83%. Year-to-date, the global benchmark has risen by 8.5%.
- RBOB Gasoline June contract: $2.56 per gallon, up 0.27%. Year-to-date, gasoline futures have risen approximately 22%.
- Natural Gas June contract: $2.18 per thousand cubic feet, up 1.63%. Year-to-date, gas has fallen about 13.4%.
Last week, oil prices fell over 6% as traders reduced geopolitical risk premiums due to fears of a conflict between Iran and Israel. Additionally, U.S. crude inventories surged due to weakened demand. However, the situation in the Middle East has reignited tensions, especially after the Israel Defense Forces instructed a large number of Palestinians to vacate Rafah. Efforts to mediate a cease-fire between Israel and Hamas have once again stalled, with both sides accusing each other of sabotaging negotiations.
Prime Minister Benjamin Netanyahu stated on Sunday that Israel would not yield to international pressure to end the Gaza conflict until Hamas is defeated.
"If Israel is compelled to stand alone, Israel will stand alone," Netanyahu declared in a speech at Yad Vashem commemorating the Holocaust. "And I declare to you, we will defeat our genocidal enemies. Never again is now."
In addition to the developments in the Middle East, Saudi Arabia has raised the prices of its primary crude oil for Asian markets for the third consecutive month. This increase suggests that Riyadh anticipates strong demand in the near future, according to a price list seen by Bloomberg News.