Oil is heading to record gains for the third week in a row

Ammon – For the third week in a row for the first time since April, supported by the scarcity of supply amid tension in Libya and Nigeria and the decline in the pace of inflation in the United States, which markets hope will put an end to raising interest rates in the largest economy in the world.

US consumer prices (inflation) rose slightly in June, posting the lowest annual pace of increase in more than two years as inflation continued to ease.

Producer prices also rose slightly in June, the annual increase being the smallest in nearly three years.

Both indicators give markets hope that the US Federal Reserve is closer to ending its fastest tightening cycle since the 1980s.

price move

Brent crude futures rose 8 cents, or 0.1 percent, to $81.44 a barrel by 0335 GMT.

US West Texas Intermediate crude futures rose 14 cents, or 0.2 percent, to $77.03.

And both benchmarks, which have risen about 9 percent this month, are on their way to rising for the fourth consecutive session.

Brent crude is heading to record weekly gains of more than 4 percent, and also US crude is on its way to achieving weekly gains of nearly 4 percent.

For its part, ANZ said in a note to clients on Friday, “Positive sentiment towards risk has swept the markets, driven by more data showing a slowdown in US price pressures, which raised hopes that the Federal Reserve may have only one time to finish a cycle.” raise interest rates.”

Yesterday, Thursday, a number of oil fields in Libya were closed as a local tribe protested the kidnapping of a former minister.

ANZ said in a note to clients on Friday that the protests in Libya alone could remove more than 250,000 barrels of oil per day from the market.

Separately, Shell halted shipments of Nigerian Fourcados crude oil due to a possible leak at a terminal.

“Crude oil prices are getting support from expectations that the oil market will become very tight as Libya and Nigeria deal with the turmoil, while Russian crude exports decline,” said OANDA analyst Edward Moya.

Saudi Arabia and Russia, the world’s two largest oil exporters, agreed this month to deepen oil cuts that have been in place since November last year, providing more support for crude prices.

On the other hand, the Organization of the Petroleum Exporting Countries (OPEC) on Thursday raised its forecast for oil demand for 2023, adding that it expects demand growth of 2.2 percent in 2024.

The National Bank of Australia predicted in a research note Friday that OPEC’s expectations, if realized, would “lead oil prices to the $100 per barrel mark,” adding that the depreciation of the US dollar continues to boost commodity prices.


Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top