[Economics] Oil increases its gains by more than 2 percent as recession fears recede

[Guest High King Eslam]

Oil prices rose on Monday as fears of a recession in the United States receded, shifting market focus to tight supply, which supported prices after recording a weekly decline for three consecutive weeks for the first time since November.

A better-than-expected US jobs report for April helped oil prices rise 4 percent on Friday, although labor market strength could push the Federal Reserve (the US central bank) to keep interest rates higher for longer.

The change in prices

Brent crude rose $1.63, or 2.16%, to $76.93 a barrel by 11:09 GMT. US West Texas Intermediate crude also rose $1.72, or 2.4 percent, to $73.09, according to Reuters data.

"Oil's recovery comes on the heels of a surge in energy stocks on Wall Street last Friday after the United States reported strong jobs data, which eased fears of an imminent recession," said Tina Ting, an analyst at CMC Markets.

Brent crude ended last week down about 5.3 percent, while US crude fell 7.1 percent, even after prices rebounded on Friday. Both benchmarks fell for three consecutive weeks for the first time since November.

A round of voluntary production cuts from some countries in the OPEC + coalition, which includes the Organization of the Petroleum Exporting Countries (OPEC) and its allies, begins this month. The coalition will hold its next meeting on the fourth of June.

On Wednesday, the US is expected to release its Consumer Price Index report for April, which could influence the Federal Reserve's decision on interest rates.

OPEC releases its latest monthly Oil Market Report on Thursday, which will provide an updated reading of its supply and demand forecasts.

https://www.i3lam-al3arab.com/النفط-يزيد-مكاسبه-بأكثر-من-2-بالمئة-مع-ا/