Oil updates: geopolitics is perceived favourably, and crude is expected to rise weekly as demand signs
Oil updates: geopolitics is perceived favourably, and crude is expected to rise weekly as demand signs
SINGAPORE: As reports this week from the US and China, the two countries that use crude oil the most, indicated greater demand and ongoing concern over the Gaza war boosted prices, oil gained on Friday, setting up a weekly gain, according to Reuters.
China's oil imports in April were higher than last year, according to figures released on Thursday, suggesting that trade activity is strengthening. The decline in US crude inventories was prompted by greater refinery runs.
Concerns about possible interruptions to Middle Eastern supply chains have persisted despite the lack of progress in negotiations to end the violence between Israel and Hamas.
At 8:14 a.m. Saudi time, Brent futures increased by 58 cents, or 0.6 percent, to $84.41 a barrel. This puts them on track for a weekly gain of 1.7%. With a weekly increase of 2.2 percent planned, US West Texas Intermediate crude increased by 58 cents, or 0.7 percent, to $79.84.
China's imports and exports increased in April after declining the month before, indicating that demand had improved.
In a note, ANZ Research stated that "continuing signs of strength in demand in China should see commodity market remain well supported."
China's imports and exports increased in April after declining the month before, indicating that demand had improved.
In a note, ANZ Research stated that "continuing signs of strength in demand in China should see commodity market remain well supported."
Palestinian residents reported on Thursday that Israeli soldiers had bombarded Rafah in the Gaza Strip, as an Israeli official declared the conclusion of indirect talks with Hamas. Other Middle Eastern nations may become involved in the conflict as it carries on, especially Iran, a major manufacturer and Hamas' principal ally.
According to a note from Citi analysts, "Israel's preparations for a Rafah intervention and rising tensions on its northern border are a reminder that geopolitical risks could persist through all of Q2 2024, at least."
According to a note from Citi analysts, "Israel's preparations for a Rafah intervention and rising tensions on its northern border are a reminder that geopolitical risks could persist through all of Q2 2024, at least."
Nevertheless, the bank's analysts predict that prices will ease until 2024. In the second quarter, Brent averaged $86 a barrel, and in the third, it was at $74 due to looser supply and demand fundamentals. This is because there are indications that the growth in global oil demand "appears to be moderating."
Source arabnews.com
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