Political uncertainty drives oil prices up

Oil prices increased on Monday, driven by political uncertainty in the US and the Middle East.

Brent Crude Oil Futures Price rose by about USD 0.16 per barrel to USD 85.03, while West Texas Intermediate (WTI) crude increased to around USD 82 per barrel, according to CNN.

Escalating geopolitical events in the Middle East also played a significant role in influencing the markets. Conflicting statements regarding the cessation of ceasefire talks in Gaza added to the regional instability, further affecting oil prices.

On a positive note for the oil markets, ongoing production cuts from OPEC+ and Iraq's plans to compensate for any surplus production starting in 2024 are expected to stabilize prices amid global demand fluctuations. 

Furthermore, China reported a 2.3 percent decrease in oil imports during the year's first half. 

In the US, the local oil market is also facing challenges. The number of active oil rigs has dropped to its lowest level since December 2021.