Lower demand from China and the possibility of a ceasefire in Gaza are putting downward pressure on prices.
The oil prices fell on Friday, completing their third consecutive weekly decline, pressured by weak demand in China and expectations of a ceasefire agreement in Loop, which could ease the tension in Middle East, along with the supply concerns that accompany them.
The futures of the Brent fell $1.24, or 1.51%, to $81.13 a barrel, and West Texas Intermediate (WTI) in USA In September, it fell by $1.12, or 1.43%, to $77.16. Thus, for the week, Brent lost more than 1%, while WTI fell by more than 3%. In the past three weeks, the decline is around 5%.
Thursday’s gains, driven primarily by data showing that the American economy had grown at a faster-than-expected pace in the second quarter, were overshadowed by the broader declines of recent weeks.
Downward pressures on oil
Recent data, such as figures from July 20, showed that total imports of fuel oil of China fell by 11% in the first half of 2024, have raised concerns about the broader outlook for Chinese demand. In parallel, the apparent demand for oil The Asian giant’s crude oil production fell 8.1% to 13.66 million barrels per day in June, raising concerns about consumption, according to analysts at ANZ Research.
“The weakness is likely driven by the gasoline and the diesel, “As new energy sources and self-driving vehicles become more popular,” they said.
Also, in Middle East, the hopes of a Stop the fire in Gaza have been gaining momentum: After months of negotiations, U.S. officials said the sides appear closer than ever to an agreement for a six-week ceasefire in exchange for the release of Hamas of women, sick, elderly and wounded hostages. The advance came after pressure from the vice president of the United States —and Democratic presidential candidate— Kamala Harris to the Prime Minister of Israel, Benjamin Netanyahu.
However, the Falling oil prices was hampered by threats to production arising from forest fires in Canada, the large reduction in crude oil inventories in the United States and hopes that US interest rates will fall in September, according to Tamas Varga, oil analyst PVM.
Source: Ambito
