Crude oil prices rose on Monday following a weekend attack on a Saudi oil facility by Yemeni separatists and as traders looked for signs that Sino-US trade tensions could ease.
CONCERNS ABOUT RECESSION LIMITED CRUDE PRICE GAINS
Price gains were, however, capped to some degree by an unusually downbeat OPEC report that stoked concerns about growth in oil demand. Brent crude LCOc1, the international benchmark for oil prices, was up 55 cents, or about 0.9%, at $59.19 a barrel at 0820 GMT.
US West Texas Intermediate (WTI) crude futures CLc1 were up 57 cents, or 1%, at $55.44 a barrel. “The oil market seems to be pricing in again a geopolitical risk premium following the weekend drone attacks on Saudi Arabia, but the premium might not sustain if it does not result in any supply disruptions,” said Giovanni Staunovo, oil analyst for UBS.