Oil prices saw a slight rise on Friday but remained on track for a third consecutive week of declines due to weak demand from China and ongoing expectations of a ceasefire deal in the Gaza conflict.
- Brent Crude Futures: Increased by 15 cents (0.2%) to $82.52 per barrel.
- US West Texas Intermediate (WTI) Crude: Rose by 13 cents (0.2%) to $78.41 per barrel.
Despite these modest gains, oil prices have seen significant declines over the past few weeks, with benchmarks falling about 5% in this period. This week’s trading saw Brent trading marginally lower, while WTI was down by over 2%.
Key Factors Influencing Oil Prices:
- Weak Demand from China:
- China, the world’s largest crude importer, showed an 8.1% decrease in apparent oil demand, dropping to 13.66 million barrels per day in June.
- Analysts at ANZ Research attribute this weakness to the growing popularity of new energy and autonomous driving vehicles, affecting gasoline and diesel demand.
- Middle East Ceasefire Hopes:
- Hopes for a ceasefire deal in the Gaza conflict have also impacted oil prices. US Vice President Kamala Harris urged Israeli Prime Minister Benjamin Netanyahu to work towards a ceasefire to alleviate the suffering of Palestinian civilians.
- Negotiations for a ceasefire have been ongoing for months, with US officials believing that the parties are closer than ever to agreeing on a six-week ceasefire in exchange for the release of hostages by Hamas.
These factors combined have contributed to the overall trend of declining oil prices, despite the brief uptick observed in the last couple of days.
