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Oil closed lower, but added its second consecutive week to the rise

Oil closed lower, but added its second consecutive week to the rise
Oil closed lower, but added its second consecutive week to the rise

The prices of Petroleum added their second consecutive week of growth, despite the fall this Friday, linked to the fear that the growth of global demand will be reduced by the strength of the dollar and negative economic news from some parts of the world.

Brent futures settled down 47 cents, or 0.55%, at $85.24 a barrel, while U.S. crude futures West Texas Intermediate (WTI) for delivery in August fell 56 cents, or 0.69%, to $80.73.

Despite this, both benchmarks achieved their second week of gains, with around 3%, after the fall. Prices have gained about 5% this month, reaching at times their highest level in more than seven weeks.

However, the decline took out WTI out of the technical overbought zone for the first time in four days, while Brent They remained overbought for the fourth consecutive day, for the first time since early April.

A strong dollar and mixed data from developed economies

The prices of Petroleum They fell this Friday because the dollar reached its highest level in seven weeks against a basket of currencies, due to the patience of the Federal Reserve when it comes to cutting interest rates, which contrasts with the more relaxed positions of other institutions.

A dollar Stronger currency may also reduce oil demand by making greenback-denominated commodities, such as crude oil, more expensive for holders of other currencies.

Meanwhile, the American business activity reached its highest level in 26 months in June thanks to the rebound in employment, but pressures on prices eased considerably, giving rise to hopes that the recent slowdown in the economy will continue. inflation.

In the India, Refineries processed almost 1.3% more crude oil in May than a year earlier, according to provisional government data, while the proportion of Russian supplies in the imports of the country, the world’s third largest oil consumer, increased.

“Signs of stronger demand in Asia they also boosted sentiment. “The region’s oil refineries are recovering some of their idle capacity following maintenance,” ANZ Research analysts noted.

In China, second world oil consumer, Beijing warned that the escalation of frictions with the European Union over imports of electric vehicles could trigger a trade war.

Source: Ambito

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