Oil prices are set to post a gain this week as a combination of inventory declines, a slowdown in U.S. manufacturing, and escalating tensions in the Middle East boost bullish sentiment.
Even if headed towards the first weekly gain since early April, oil prices have so far failed to break out above the psychologically important $90 per barrel mark. A higher-than-expected draw in US crude inventories, a notable slowdown in US manufacturing that sparked hopes of a June interest rate cut, and continuing tensions in the Middle East have added some upside with ICE Brent currently trading around $89 per barrel.
