Oil started the week strong after Saudi Arabia and other OPEC+ members signaled intentions to keep supplies constrained for the rest of the year, while U.S. tensions with Iran ratcheted up as President Donald Trumpthreatened the country in a tweet.
Futures in New York rose as much as 1.3%, following a 1.8% gain last week. Saudi energy minister Khalid Al-Falih urged members of the alliance meeting in Jeddah to “stay the course” on output cuts. Meanwhile, just weeks after the U.S. increased sanctions pressure on Iranian crude exports, Trump tweeted “If Iran wants to fight, that will be the official end of Iran.”
West Texas Intermediate crude for June delivery rose as much as $1.05 cents to $63.81 a barrel on the New York Mercantile Exchange at 9:19 a.m. in Singapore. The contract added 1.8% last week, the biggest weekly increase since early April. The contract expires after end of trading Tuesday. The more actively traded July contract rose to as high as $63.96.
Brent for July settlement rose $1.07 cents to $73.28 a barrel on the London-based ICE Futures Europe exchange. The contract added 2.3% last week. The global crude benchmark traded at a $9.50 premium to WTI for the same month.