Oil opens the week stable due to lower demand forecasts

Oil opens the week stable due to lower demand forecasts
Oil opens the week stable due to lower demand forecasts

Brent and WTI futures are trading little changed after disappointing economic data in China.

Photo: Freepik

He Petroleum remained stable at the beginning of the week after economic data in Chinawhich underline an uneven recovery for the world’s largest crude oil importer, countered hopes of a boost in fuel demand due to the summer season in the northern hemisphere.

The Brent crude oil futures They lost 3 cents, to $82.59 a barrel, at 1038 GMT. US crude oil futures West Texas Intermediate (WTI) They lost 13 cents to $78.32. Last week, both benchmarks recorded their first weekly rise in four weeks, due to confidence that inventories of Petroleum will be reduced as the summer season begins.

Aside from retail sales, which beat forecasts due to a holiday boost, Monday’s flurry of Chinese data was largely bearish. This data followed a survey on Friday showing that US consumer confidence had fallen in June to its lowest level in seven months.

“Last week’s rise had not been totally convincing,” said Tamas Varga, of the oil broker PVM. “Further weakness is seen this morning due to sluggish activity in Chinese factories.”

The reports of the OPEC and of the International Energy Agency last week, although they disagreed about the strength of the economy’s growth oil demand This year, they had supported confidence that inventories would be reduced in the second half.

Even so, analysts Bank of America (BofA) pointed out in a report that, although the market consensus is that oil prices rise in the third quarter, there is a risk for prices if the weak balance between supply and demand persists.

“It is not yet clear whether balance sheets will strengthen enough in the third quarter for the market to move from an apparent surplus to a deficit that can lift prices,” wrote BofA analysts, including Francisco Blanch.

On the geopolitical front, concerns about a broader war in Half East persisted after Israel said on Sunday that the intensification of cross-border shooting by the Lebanese movement Hezbollah could trigger a serious escalation.

Source: Ambito

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