Oil prices rise due to economic optimism
Experts see demand concerns as "exaggerated" and focus on limited oil supply

Oil prices are on the upswing again after falling steadily over the past three weeks for the first time since November. Brent oil futures rose 43 cents, or 0.6%, to $75.73 a barrel on Monday, while U.S. West Texas Intermediate (WTI) crude futures also rose 45 cents, or 0.6%, to $71.79 a barrel. The reason for the increase is the easing of recession fears in the U.S., which have helped push oil prices down in recent weeks.
Last week, those fears caused Brent prices to fall 5.3% and WTI prices to fall 7.1%. But a healthy April U.S. jobs report, a weaker U.S. dollar and expectations of production cuts at the next meeting of the Organization of the Petroleum Exporting Countries and Allies, collectively OPEC+, in June helped the benchmarks rise about 4% each on Friday.
Analysts at Goldman Sachs expressed optimism in a note Saturday, saying concerns about demand due to stress in the U.S. banking system and an industrial downturn, as well as limited containment of OPEC+ cuts in global supply, were "overdone." The investment bank maintained its forecast for Brent oil prices of $95 a barrel by December and $100 by April.
U.S. inflation figures for April, due Wednesday, could provide further clues on interest rate hikes. The U.S. central bank, the Federal Reserve, is expected to pause its rate hikes. This week, Chinese economic indicators for April, including trade, inflation, credit and money supply, will also be closely watched by market participants to assess the economic recovery of the world's second largest oil consumer.
