{"id":10686,"date":"2024-05-10T11:16:22","date_gmt":"2024-05-10T11:16:22","guid":{"rendered":"https:\/\/roydadnaft.ir\/English\/?p=10686"},"modified":"2024-05-10T11:16:22","modified_gmt":"2024-05-10T11:16:22","slug":"oil-prices-rise-on-strong-chinese-demand-weakening-u-s-labor-market","status":"publish","type":"post","link":"https:\/\/roydadnaft.ir\/English\/10686\/","title":{"rendered":"Oil prices rise on strong Chinese demand, weakening U.S. labor market"},"content":{"rendered":"

RoydadNaft – <\/a><\/span>\u00a0Brent oil futures, expiring in July, advanced by 0.5 percent to reach $84.33 per barrel<\/p>\n

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West Texas Intermediate (WTI) crude futures rose by 0.6 percent to $79.26 per barrel.<\/p>\n<\/div>\n

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Oil prices saw an increase on Friday and were poised to conclude a strong week due to positive indications of demand in China, the leading oil importer. Meanwhile, the likelihood of an Israel-Hamas ceasefire seemed increasingly unlikely.<\/p>\n

The decline in the U.S. labor market, coupled with a weaker dollar, supported crude prices.<\/p>\n

Additionally, recent data revealing a reduction in overall U.S. oil inventories contributed to the upward trend.<\/p>\n

Brent oil futures, expiring in July, advanced by 0.5 percent to reach $84.33 per barrel, while West Texas Intermediate (WTI) crude futures rose by 0.6 percent to $79.26 per barrel at 21:21 ET (01:21 GMT).<\/p>\n

Both contracts were on track to achieve approximately 2 percent gains for the week, following significant losses in the previous week.<\/p>\n

Furthermore, additional favorable indicators of demand supported the oil market.<\/p>\n

As anticipated, U.S. crude inventories declined in the previous week, aligning with the projected rise in refining and fuel demand, which is expected to follow the increased travel demand during the summer season.<\/p>\n

China\u2019s oil imports exhibited similar trends, declining compared to the previous month but remaining at levels similar to those observed last year.<\/p>\n

Positive demand signals, coupled with the projected rise in travel demand during the summer, contributed to the decline in U.S. crude inventories.<\/p>\n

However, data indicated that last week\u2019s U.S. gasoline and diesel demand reached its lowest levels since the onset of the COVID-19 pandemic in 2020.<\/p>\n

Nonetheless, the weaker dollar benefited crude prices, as weak readings in the U.S. labor market continued to emerge.<\/p>\n

These readings further reinforced expectations that the Federal Reserve would commence interest rate cuts by September of this year.<\/p>\n

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Updated on