“Oil prices are on track for a second straight week of gains after a sharp cut in U.S. interest rates and shrinking global inventories.”, — write: www.epravda.com.ua
Oil prices are on track for a second straight week of gains after a sharp cut in U.S. interest rates and shrinking global inventories.
About this informs Reuters.
Brent crude futures, which were trading 26 cents, or 0.4%, lower at $73.62 a barrel were up 4.3% this week. U.S. WTI crude futures, which were down 15 cents, or 0.2%, at $71.80 a barrel, rose 4.8% for the week.
After falling to near three-year lows on Sept. 10, the indexes have been recovering, and have since posted gains in five of seven sessions.
Lower interest rates typically spur economic activity and energy demand, but some also see it as a sign of a weak U.S. labor market.
An unseasonal shortfall in the oil market of about 400,000 barrels per day (bpd) will keep Brent prices in the $70-$75 per barrel range for the next quarter, Citi analysts said on Thursday, but prices could rise sharply in 2025 to fall
Oil prices are also supported by rising tensions in the Middle East. Walkie-talkies used by the Lebanese armed group Hezbollah exploded on Wednesday, following similar pager explosions the day before.
Weak demand from China’s slowing economy weighed on prices, and Chinese refinery output slowed for a fifth consecutive month in August. Industrial production growth in China also slowed to a five-month low last month, while retail sales and new home prices fell further.
We will remind:
Oil prices fell down in after two sessions of gains as weak economic data weighed on demand.
Oil exports from Saudi Arabia, the largest oil exporter in the world, in July 2024 fell down to the lowest level in almost a year.