The price of Brent crude rose above $80 a barrel on Thursday, in light of concerns about demand and a decline in the war risk premium, which stimulated selling operations during the past week.
Price movements
By 14:45 GMT, Brent crude futures rose by $1.3 percent to $80.54 per barrel. US West Texas Intermediate crude futures also increased $1.01, or about 1.3 percent, to $76.34.
This rise comes after the two benchmark crude oils fell to their lowest levels since mid-July yesterday, Wednesday, with concerns about the possibility of supply disruptions in the Middle East receding and concerns about demand in the United States and China increasing.
Brent crude oil is about $20 per barrel below its peak in September.
Data issued by China on Thursday indicate that efforts to control low inflation in the face of weak demand still represent a challenge for policymakers in the country.
Chinese consumer prices fell in October as key measures of domestic demand pointed to weakness not seen since the pandemic period, while increasing deflation in the producer price index cast doubt on the chances of a broad economic recovery.
Earlier in the week, customs data showed that China’s total exports of goods and services contracted faster than expected.
Demand indicators do not look rosy in the United States either.
Sources said, citing figures from the American Petroleum Institute, that US crude oil inventories increased by 11.9 million barrels over the week ending November 3.
If confirmed, this would represent the largest weekly increase since February.
However, the US Energy Information Administration postponed the release of weekly oil inventory data until November 15 in order to update the system.
On the bright side, global markets were optimistic on Thursday on the belief that major central banks have now finished their interest rate hike cycle. High interest rates increase the cost of borrowing, weakening demand for everything, including oil.
The Organization of the Petroleum Exporting Countries (OPEC) and the International Energy Agency are scheduled to present their views on the situation of oil demand and supply fundamentals next week.
OPEC is scheduled to meet at the end of the month to discuss production policy for 2024.
2023-11-09 16:18:51
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