Oil prices set for weekly gains on renewed enthusiasm around US economy
Oil prices were set for a second straight week of gains despite edging lower today, as recent US economic data boosted optimism over demand from the world’s top oil consumer.
Brent crude futures have risen about 1.3% this week, while US West Texas Intermediate crude futures have increased about 1.2%.
On Friday, Brent fell 22 cents, or 0.3%, to $80.82 per barrel by 0650 GMT, while WTI fell 30 cents, or 0.4%, to $77.86.
US retail sales data on Thursday beat analysts’ expectations, while separate data showed fewer Americans had filed new applications for unemployment benefits last week, sparking renewed optimism around US economic growth.
“Crude oil reversed recent losses as positive economic data and supply side concerns boosted investor sentiment,” analysts at ANZ Research said.
Analysts at consultancy FGE said oil markets would now return their focus to geopolitics, amid warnings of retaliatory attacks from Iran against Israel over the killing of a Hamas leader in Tehran.
A fresh round of negotiations began on Thursday to secure a ceasefire in the Gaza war, even as Israeli troops continued their assault on the Palestinian enclave.
The talks, which have been boycotted by Hamas, were extended and will resume in the Qatari capital Doha on Friday.
Keeping a lid on oil prices, Chinese refineries sharply lowered crude processing rates last month on tepid fuel demand.
The Organisation of the Petroleum Exporting Countries (OPEC) on Monday pared its demand outlook for this year, citing softer expectations for China.
“Despite crude oil inventories rising last week, gasoline and distillate demand remains strong. This doesn’t appear to be the case in China, with apparent oil demand falling 8% y/y in July,” ANZ analysts said.
Article Source – Oil prices set for weekly gains on renewed enthusiasm around US economy – RTE
