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Oil prices rose even as crude heads for a weekly loss

Oil prices rose even as crude heads for a weekly loss
February 2, 2024 – 15:07

Reference values ​​continued to fall due to fear generated by the growth of Chinese demand.

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The prices of Petroleum rose on Friday after the group’s decision OPEC+ to maintain its production policy unchanged, but the reference prices were still heading towards weekly losses due to fears about the growth of Chinese demand.

The futures of Brent crude oil were up 50 cents, or 0.6%, at $79.20 a barrel by mid-morning and crude oil futures West Texas Intermediate U.S. stocks gained 47 cents, or 0.6%, to $79.20. Meanwhile, the barrel of Brent had approached $85 in Monday trading.

Two sources of OPEC+ They stated this Thursday that the group has kept its production policy and will decide in March whether to extend voluntary oil production cuts in effect during the first quarter.

The Organization of Petroleum Exporting Countries (OPEC) and its allies led by Russia, known collectively as OPEC+, Production cuts of 2.2 million barrels per day are applied (bpd) for the first quarter, as announced in November.

The decision of the United States Federal Reserve to maintain the benchmark overnight interest rate in the range of 5.25-5.50% and the comments of the Fed president, Jerome Powellsaying that interest rates had peaked and would fall in the coming months.

Lower interest rates would reduce costs of indebtedness of the consumers, which can boost economic growth and demand for oil.

The war between Israel and Hamas influences prices

However, the prices of Petroleum were still headed for weekly losses of around 5%, after unfounded reports of a ceasefire between Israel and Hamas They capped gains and caused contracts to fall more than 2% on Thursday.

Concerns about the economic recovery persisted yel International Monetary Fund predicted on Friday that the country’s economic growth will slow to 4.6% in 2024 and continue to decline in the medium term to 3.5% in 2028.

Meanwhile, concern over maritime transport continued after a military spokesman for the Houthi group, aligned with Iran, said Thursday that attacks on shipping will persist until “Israel’s siege of the Gaza Strip“.

Source: Ambito

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