Oil prices rose in European trade on Monday for the third straight session, hitting a three-month high and on track for the largest monthly profit in 2023 as oil markets prepare for shortages in the second half of the year.
Demand is also expected to rise in China and the US, with the US economy beating expectations despite the high interest rates, while China launched new stimulus measures to boost the economy.
Global Oil Prices
US crude rose 1.3% to $81.64 a barrel, the highest since April, with a session-low at $80.17, while Brent added 1.4% to $85.33 a barrel, the highest since April.
US crude rose 1.1% on Friday, while Brent added 1.3%, the second profit in a row.
Monthly Trading
Oil prices are up 15% so far this month, on track for the second monthly profit in a row, and the largest since January 2022.
Shortage
In a note, Citibank analysts expect higher oil prices to come as Russian and Saudi output cuts go into effect, with more gains in prices expected in upcoming months.
Even as the Federal Reserve raises interest rates once more this week, the oil market is expected to tighten with prices buoyed by recent OPEC + production cuts.
US Economy
Recent data showed US economy grew 2.4% in the second quarter of the year, beating estimates of 1.8%.
Such data proves the economy wasn’t impacted much by higher US interest rates, with economic activities growing steadily, in turn boosting fuel demand.
Chinese Demand
China’s government announced fresh stimulus measures to support private investment in infrastructure projects.
Such measures are aimed at boosting economic growth, in turn boosting fuel demand in the world’s second largest fuel consumer.