Friday saw a little increase in oil prices, but they are still expected to decrease for a third straight week due to sluggish demand in China, the world’s largest petroleum importer, and hopes for a ceasefire agreement in the Gaza conflict and other Middle Eastern hostilities.
September’s Brent crude futures increased by 12 cents, or 0.2%, to $82.49 a barrel. September’s price of U.S. West Texas Intermediate crude rose by 13 cents, or 0.2%, to $78.41 a barrel.
The larger losses in previous weeks outweighed the Friday and Thursday gains, which were mostly attributable to data indicating the U.S. economy grew at a faster-than-expected rate during the second quarter. Over the past three weeks, the benchmarks have dropped by roughly 5%. This week, WTI is down more than 2%, but Brent is only slightly down.
This week’s Chinese statistics revealed that, according to experts at ANZ Research, China’s apparent oil demand dropped 8.1% to 13.66 million barrels per day in June, raising concerns about consumption. “The weakness is likely driven by petrol and diesel, as rising new energy and autonomous driving vehicles become more popular,” ANZ stated.
