Global oil markets opened the new week with modest gains across major crude benchmarks, as Brent and WTI edged higher in early Monday trading. Murban crude, however, underperformed amid regional oversupply, while natural gas futures extended last week’s losses, pressured by mild weather forecasts and stable inventory builds.
WTI and Brent Climb in Early Week Trade
- Brent Crude gained 0.11%, trading at $64.83.
- WTI Crude rose 0.10% to $61.56 per barrel,
Monday’s uptick reflects ongoing optimism over global fuel demand recovery, especially in the transport and aviation sectors. Positive sentiment also stemmed from softening U.S. dollar conditions and steady Chinese crude imports reported late last week.
“The start of the week shows cautious optimism, but the fundamentals remain mixed,” said Tayo Ikenna, an energy risk consultant based in London. “Refiners are running steady, but macroeconomic fragility keeps a ceiling on prices.”
Murban Crude Trails as Asia Inventory Builds
- Murban Crude moved up 0.08% to $66.03, but remained the weakest among the major benchmarks.
Traders say Asian refiners are sitting on high storage volumes following a Q1 buying spree, particularly in India and South Korea. Coupled with increased term contract fulfilments, spot Murban demand continues to trail Western counterparts.
Natural Gas Slumps Further on Low Demand Outlook
- Natural Gas fell 1.11% to $3.488 per MMBtu in Monday’s early session.
The drop follows updated weather models showing above-average temperatures across key U.S. and European gas regions. Market analysts also cited muted LNG spot demand from Asia and Africa, pushing the near-term sentiment bearish.
“We’re entering a non-peak gas period where neither heating nor cooling demand offers support,” noted Ifeoma Okeke, a gas trader with Shell West Africa. “Until power sector demand kicks in more aggressively, we expect pressure to persist.”
Outlook: Price Moves May Remain Rangebound
The narrow Brent-WTI spread at just over $3.27 reflects aligned supply-demand dynamics between U.S. and international crude. This tight range may limit arbitrage flows but suggests market stability in the absence of fresh macro shocks.
Meanwhile, traders remain cautious ahead of OPEC+ commentary later this week, which could provide new guidance on summer production targets. Natural gas markets will also watch Wednesday’s U.S. inventory data for directional cues.
Crude oil opened the week on a solid footing, with Brent and WTI continuing last week’s momentum. However, diverging performance in Murban and a renewed slump in natural gas highlight the mixed signals facing global energy traders. As spring unfolds, fuel market direction will hinge on refinery throughput, economic data, and evolving geopolitical developments.
