The price of oil increased by about 0.5%, which was facilitated by the weakening of the US currency, as well as expectations of an increase in demand for petroleum products in the summer period.
China's economic prospects are also in focus. A private gauge of China’s manufacturing activity showed an expansion in June to the highest in three years. That diverged from official data showing a contraction, clouding the outlook. The Caixin manufacturing PMI rose to 51.8 in June from 51.7 in May. A score above 50.0 indicates expansion. This was the eighth consecutive monthly improvement and also marked the fastest since May 2021.
Last month, Brent and WTI oil prices jumped by about 6% after the OPEC+ extended most of its deep oil output cuts well into 2025. Against this background, the likelihood of a supply shortage in the third quarter has increased, as transportation and demand for air-conditioning during the summer eat into fuel inventories. Meanwhile, on Friday, the Energy Information Administration (EIA) reported that oil production and demand for major products reached a 4-month high in April.
Hopes for an easing of the Fed's monetary policy and growing geopolitical concerns in Europe and the Middle East also have a positive impact on oil prices. Traders are also monitoring the impact of hurricanes on oil and gas production and consumption in the Americas. The Atlantic hurricane season began with Hurricane Beryl on Sunday.