Oil prices continued to rise on Monday morning, as escalating tensions in the Middle East remained a significant concern for traders.
Brent crude increased by 1.3% to reach $80.05 per barrel, while West Texas Intermediate rose by 0.7% to $77.29 per barrel.
Prices had steadily climbed throughout the previous week due to ongoing worries about the potential expansion of conflict in the Middle East.
Additionally, encouraging US jobs data contributed to the price rise, with unemployment claims figures released last week falling below expectations, thereby boosting confidence in the world’s largest economy.
News of US oil refineries planning to scale back operations this quarter added upward pressure on prices, with Marathon Petroleum Corp set to operate at its lowest capacity since 2020.
Marathon, which owns the country’s largest refinery, announced that its plants would run at an average of 90% capacity for the quarter.
Similarly, PBF Energy Inc, Phillips 66, and Valero Energy Corp have also revealed plans to reduce processing. Together, these companies account for approximately 40% of America’s refining capacity.
