Oil prices rose by more than 1% to settle at $79.12 per barrel on Monday, rebounding from the previous session’s decline, buoyed by signs of improving demand in China, the world’s top importer, and concerns over potential supply disruptions in Canada. Chinese data showed consumer prices rising for the third consecutive month in April, indicating improved domestic demand. Investors were also monitoring potential oil supply disruptions due to wildfires in Western Canada, which could impact the country’s 3.3-million-barrel daily oil sands production capacity. Also, expectations that OPEC+ will extend supply cuts into the second half of the year have also supported oil prices. Iraq, the second-largest OPEC producer, has committed to production cuts agreed by the producer group. Meanwhile, Traders are cautious about the Middle East amid ongoing conflicts. Israel’s military operation in Gaza has led to a significant death toll, raising concerns about regional stability.
