West Texas Intermediate (WTI), futures on NYMEX, extends its recovery to $79.00 in Monday’s European session. The Oil price rebounds after a six-day losing spell on multiple tailwinds. The black gold benefitted from a decline in the US Dollar, a deepening Middle East crisis, and an increase in official selling prices of Oil by Saudi Arabia to various regions.
The dollar-denominated Oil rises as an appeal for the Greenback darkens after the crucial United States official labour market data for April remained weak. The US Nonfarm Payrolls (NFP) data released on Friday reported that fewer jobs were created and the Unemployment Rate rose to 3.9%.
Weak job market status prompts expectations for the Federal Reserve (Fed) to unwind its restrictive interest rate stance. The scenario is favourable for the Oil price as it increases its demand.
Meanwhile, geopolitical risks in the Middle East region have deepened fears of tightening oil supply. The ceasefire between Israel and Palestine is less likely, and the former is expected to extend its operation into Rafah, which is the southern part of Gaza.
Apart from that, Saudi Arabia's move to raise the official selling prices (OSPs) for its crude sold to Asia, Northwest Europe and the Mediterranean in June, signalling expectations of strong demand this summer, reported Reuters
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