Although there was a tiny increase in oil prices on Friday, they are still expected to decrease for a third straight week due to sluggish demand in China, the world’s largest petroleum importer, and anticipation of a ceasefire accord for the Gaza war and related Middle Eastern unrest.
By 8:48 a.m. Saudi time, Brent crude futures for September increased by 15 cents, or 0.2 percent, to $82.52 per barrel. September’s price of US West Texas Intermediate crude rose by 13 cents, or 0.2 percent, to $78.41 a barrel.
Wider losses in recent weeks outweighed the gains on Friday and Thursday, which were mostly attributable to data indicating the US economy grew at a faster-than-expected rate during the second quarter.
The last three weeks have seen a roughly 5% decline in the benchmarks. This week, WTI is down more over 2 percent, while Brent is only slightly down.
According to ANZ Research analysts, Chinese statistics released this week revealed that the nation’s apparent oil demand decreased by 8.1 percent to 13.66 million barrels per day in June, raising questions about consumption.
According to ANZ, “as rising new energy and autonomous driving vehicles become more popular, gasoline and diesel are likely driving the weakness.”
Brighter hopes of an end to the Gaza fighting also pulled prices down.
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