Oil prices opened the new month on a bullish note, climbing by about 2% across major benchmarks as traders reacted to tighter supply expectations and renewed optimism in global demand. The upward movement signals a potential shift in market sentiment after recent volatility, especially as investors position themselves ahead of key OPEC+ developments.
Brent, WTI push higher as traders reposition
Brent crude, the global benchmark, kicked off the session. It rose 1.94% to $63.59, supported by tightening shipments from key producers and a slight drawdown in floating storage volumes. Traders note that Brent’s rise underscores stronger appetite in Europe and Asia, where buying intentions have strengthened despite wider macroeconomic uncertainty.
West Texas Intermediate (WTI) followed the same upward trajectory at $59.73, advancing 2.02% in early trading. The rally reflects increased buying interest as US refiners ramp up operations following weeks of softer margins. Analysts say the move also indicates stronger speculative flows, given WTI’s sensitivity to demand forecasts in the North American market.
Murban steadies despite slight pullback
Murban crude traded at $65.52, advancing 1.93% but still reflecting a softer tone compared with the other markers due to region-specific supply adjustments. While the benchmark posted gains, it showed signs of mild intraday pressure linked to temporary oversupply in parts of the Middle East. Nevertheless, market participants remain confident that demand for light, low-sulphur grades like Murban will stay robust as Asian refiners continue to optimise throughput.
Gas prices diverge amid broader energy market caution
Natural gas, however, moved in the opposite direction. Prices slipped 0.37% to $4.832, extending a trend of subdued sentiment driven by warmer-than-expected weather forecasts and increased storage levels. The contrast between crude and gas markets reveals a broader energy-sector caution, as fundamentals remain uneven across fuel categories.