Mumbai, 20 May (Commoditiescontrol): Crude oil prices rose in early Asian trading on Monday, extending last week's gains as uncertainty loomed over the fate of Iran's president following a helicopter crash. The U.S. decision to purchase crude to replenish its national stockpile also supported prices.
Brent crude increased by 26 cents, or 0.3%, to $84.24 a barrel, while U.S. West Texas Intermediate (WTI) crude rose by 15 cents, or 0.2%, to $80.21 a barrel. Brent had closed the previous week up about 1%, marking its first weekly gain in three weeks, and WTI had climbed 2% on improved economic indicators from the U.S. and China, the world's largest oil consumers.
On Sunday, a helicopter carrying Iranian President Ebrahim Raisi crashed, putting the lives of both President Raisi and Foreign Minister Hossein Amirabdollahian at risk, according to an Iranian official. Despite the regional volatility, oil prices saw only modest movement.
The Organization of the Petroleum Exporting Countries and allies, collectively known as OPEC+, are set to meet on June 1, potentially influencing future oil price trends.
Adding to market dynamics, the U.S. government announced it had purchased 3.3 million barrels of oil at $79.38 a barrel to help refill its Strategic Petroleum Reserve. This move follows a significant sale from the reserve in 2022, taking advantage of recent price drops.
Last week's market support also came from signs of easing inflation in the U.S., which boosted expectations of interest rate cuts. Such cuts could lower the dollar's value, making oil cheaper for holders of other currencies, thereby supporting demand and prices.
Overall, the combination of geopolitical uncertainty and strategic U.S. purchases has driven crude oil prices higher as markets navigate these developments.
(By Commoditiescontrol Bureau: 09820130172)
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