On Monday, crude oil prices climbed due to easing banking sector issues while the Russian leader increased European geopolitical tensions.
West Texas Intermediate crude oil contracts for May delivery rose by 0.42% to $69.55 a barrel. Likewise, Brent oil futures for June delivery increased by 0.36% to $74.86 per barrel on March 27’s Asian afternoon session.
According to analysts, there were rebounds in risk assets around the lack of adverse banking developments rather than positive ones.
Also, they added that the hike in crude oil prices was considered a relief rally. It came after a 16.00% drop in the previous two weeks.
Furthermore, it was supported by Russian President Vladimir Putin’s statement about stationing tactical nuclear weapons in Belarus.
On Friday, Russia’s deputy prime minister said the country is close to hitting its crude oil target output cut. It equates to 500,000.00 barrels per day to around 9.50 million bpd.
Moscow is expected to maintain exports in April by slashing refinery output despite lowering volumes.
Moreover, deliveries of products were more affected than crude oil exports by a recent European Union ban. As a result, it has tons of diesel stuck on vessels, waiting for buyers.
In addition, investors are watching for China’s manufacturing and services purchasing managers’ index to be released. Based on experts, its data could be bullish for oil if it reports rebounds in the country’s economic activities.
Saudi Aramco Partners with China in Crude Oil Deal
On Sunday, Saudi Aramco signed a contract with partners in China for a crude oil refinery and petrochemical project. It will occur in Northeast China, anticipated to begin in 2026 to meet the country’s developing fuel and chemical demand.
In Liaoning province’s city of Panjin, the project will be Aramco’s second top Chinese refining investment. It follows the major crude oil exporter, having a record profit of $161.00 billion in 2022.
According to analysts, it is expected to cost around $12.20 billion. Based on Aramco’s statement, construction will begin in the second quarter after getting the required approvals. The plant is anticipated to be fully operational in 2026.