Oil prices registered a slight increase in early Asian trading on Monday, as concerns over a potential recession in the United States began to diminish after causing prices to drop for three consecutive weeks for the first time since November of last year. Brent crude futures rose by 6 cents to $75.36 per barrel by 0022 GMT. Similarly, West Texas Intermediate crude futures increased by 8 cents to $71.42.
Fears that the banking crisis in the United States would slow down the economy and reduce fuel demand in the world’s largest oil-consuming nation led to a 5.3% decline in Brent crude last week. Meanwhile, West Texas Intermediate fell by 7.1%, despite a strong rebound on Friday, which saw both crude types rise by 4%.
A better-than-expected jobs report from the United States for April, a weaker dollar, and forecasts of supply cuts at the next meeting of the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, in June helped halt the decline in prices. Tina Ting, an analyst at CMC Markets, stated that "the recovery in oil follows a rise in energy stocks on Wall Street last Friday after the United States released strong employment data, which eased fears of an impending economic recession that had led to earlier sell-offs during the week."
