Oil prices
Oil prices fell in early Asian trading, Friday, after concerns about demand erased the impact of strong economic data, but they are heading towards recording a weekly gain of about 3 percent.
And the US Department of Commerce announced, Thursday, that the gross domestic product grew by 2.4 percent in the second quarter, exceeding expectations for growth at 1.8 percent, which supports Federal Reserve Chairman Jerome Powell’s view that the economy can achieve a so-called “soft landing.”
But interest increases recently announced by global central banks aimed at quelling spiraling inflation have raised concerns about long-term demand.
On Wednesday, the US Federal Reserve raised interest rates by 25 basis points as widely expected, and the European Central Bank followed suit on Thursday.
Earlier this week, oil fell after data showed US crude inventories fell less than expected, and the US Federal Reserve raised interest rates by a quarter of a percentage point, leaving the door open for another increase.
“We still don’t see a lot of translation into increased demand for products, especially in distillates which have been offering a lot of upside for the past month,” said Jim Ritterbusch, president of Ritterbusch and Associates, Illinois.
Market movements
Brent crude fell 44 cents, or 0.5 percent, to $83.80 a barrel by 0310 GMT, but was on track for a weekly increase of about 3.4 percent.
US West Texas Intermediate crude fell 33 cents, or 0.4 percent, to $79.76 a barrel, and is set to record a weekly increase of 3.4 percent.
Oil prices rose in the last session on the back of strong business results and better-than-expected US economic data.
How do oil price fluctuations affect Kuwait’s budget?
2023-07-28 03:22:30
#Oil #heading #record #gains #week #row
