Oil prices jump to highest levels in 3 months, due to indications of supply decline and China’s commitment to support the country’s economy, which will increase its oil consumption.
Brent crude futures rose to their highest level since April 19.
Oil prices rose on Tuesday to their highest level in three months, as indications of supply decline, in addition to China’s commitment to support the country’s economy, boosted morale.
Brent crude futures rose 90 cents to $83.64 a barrel at settlement, after reaching $83.87 earlier in the session, the highest level since April 19.
West Texas Intermediate (WTI) crude also rose 89 cents to $79.63 at settlement, after reaching a high of $79.90 earlier, also the highest level since April 19.
The two crude oils have already gained for four consecutive weeks, influenced by expectations of supply contraction due to production cuts announced by the “OPEC+” alliance, in addition to the commitments adopted by the authorities in China, the world’s second-largest oil consumer. The leaders pledged to intensify support for economic policies, which means an increase in the country’s demand and consumption of crude oil.
A survey showed that business activity in the eurozone contracted much more than expected in July, and in the United States, a survey showed a slowdown in business activity in July to its lowest level in five months.
Read also: Russia plans to reduce the discount on its oil exports to $20 per barrel.
How has China’s commitment to boost its economy impacted oil consumption and prices
Oil prices surge to highest levels in 3 months due to supply decline and China’s commitment to boost economy, leading to increased oil consumption.
Brent crude futures hit their highest level since April 19.
Oil prices soared on Tuesday to their highest point in three months, driven by signs of a decline in supply and China’s pledge to support its economy, bolstering market confidence.
Brent crude futures rose by 90 cents to $83.64 a barrel during settlement, after reaching a peak of $83.87 earlier in the trading session, marking its highest level since April 19.
Similarly, West Texas Intermediate (WTI) crude rose by 89 cents to $79.63 a barrel during settlement, hitting a high of $79.90 earlier, also representing the highest level since April 19.
Both crude oils have experienced steady gains over the past four weeks, largely influenced by expectations of reduced supply due to production cuts implemented by the “OPEC+” alliance. Additionally, China’s commitment to economic policies aimed at stimulating growth has further bolstered demand and consumption of crude oil in the world’s second-largest oil consumer.
Meanwhile, a survey revealed a more significant contraction in business activity in the eurozone than previously anticipated in July. In the United States, a separate survey indicated a slowdown in business activity to its lowest level in five months.
Also Read: Russia plans to reduce the discount on its oil exports to $20 per barrel.
أخبار رائعة! يبدو أن أسعار النفط في ارتفاع مستمر بفضل التوقعات الإيجابية لتراجع الإمدادات، بالإضافة إلى دعم الصين. نأمل أن يستمر هذا النمو ويعزز الثقة في الاقتصاد العالمي.
“The surge in oil prices is a positive sign, fueled by expectations of supply decline and China’s support. It’s a welcoming development for oil-producing nations and global energy markets.”