Oil prices edge up following solid 1Q2024 performance

April 01, 2024 (MLN): Oil prices edged higher on Monday following a strong 1Q2024 gain as indications of recovery in China strengthened the demand forecast.

Brent crude traded near $87.25 per barrel, up by 0.29% on the day. It rose 12.9% in the first quarter of 2024.

While West Texas Intermediate crude (WTI) was at $83.44 per barrel. It also surged 15.8% in the first quarter.

Crude has rallied this year as OPEC+ cut back supplies to push prices higher and offset the impact of increased flows from outside the cartel, as Bloomberg reported.

The group is expected to affirm its current output policy at an online review meeting scheduled for Wednesday.

Oil has also been supported by Ukrainian attacks on Russian energy infrastructure and elevated tensions in the Middle East.

Unexpectedly resilient oil demand in Europe was also helping prices, Goldman Sachs Group Inc. said in a note, adding that softness in US supply growth, and a possible extension of OPEC+ cuts through 2024, were also bullish.

Last month, the bank said commodities would advance this year as central banks slash interest rates, aiding industrial and consumer demand.

Trading volumes are likely to be thin in the week’s opening session, with many economies including the UK away for Easter Monday.

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