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Brent oil exceeds US$84 driven by increased demand in the US and China

Brent oil exceeds US$84 driven by increased demand in the US and China

The referential barrel of Brent oil traded above $84 on Friday, after data this week showed an increase in demand in USA and Chinathe two largest global consumers, while the bitter conflict in Middle East provided support.

Brent futures were up 51 cents at $84.39 a barrel at 0956 GMT, while the West Texas Intermediate (WTI) in the United States advanced 57 cents, to $79.83.

The drop in U.S. crude oil inventories coincided with data released Thursday that showed oil imports of China in April were higher than last year, amid signs of improving commercial activity. Chinese exports and imports grew again in April after contraction the previous month.

The analysts of ANZ Research pointed out in a note that “the signs of strength in demand in China should keep the commodity market well supported.”

In Europea Ukrainian drone attack set fire to an oil refinery in the Russian region of Kalugaas reported on Friday by the state news agency RIA, in the latest attack by kyiv against Moscow’s energy infrastructure.

Meanwhile, the conflict in the Middle East continues, after Israeli forces bombed areas of the city of Rafahin the south of Loopaccording to Palestinian residents, after the latest round of negotiations to end hostilities failed.

“The preparations for Israel for an intervention in Rafah and the rising tensions on its northern border are a reminder that geopolitical risks could persist throughout the second quarter of 2024, at least,” analysts at Citi in a note.

Still, the bank believes that prices will moderate through 2024, with an average of $86 per barrel for Brent in the second quarter and $74 in the third, amid signs that the growth in global demand for Petroleum “seems to be moderating.”

Source: Ambito

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