{"id":11202,"date":"2024-07-04T10:28:05","date_gmt":"2024-07-04T10:28:05","guid":{"rendered":"https:\/\/roydadnaft.ir\/English\/?p=11202"},"modified":"2024-07-04T10:28:05","modified_gmt":"2024-07-04T10:28:05","slug":"oil-prices-slip-from-multi-month-highs-on-demand-concerns","status":"publish","type":"post","link":"https:\/\/roydadnaft.ir\/English\/11202\/","title":{"rendered":"Oil prices slip from multi-month highs on demand concerns"},"content":{"rendered":"

RoydadNaft – <\/a><\/span>\u00a0Oil prices edged lower on Thursday, retreating from the previous session’s multi-month highs, with investors taking profits as demand caution remained in focus despite last week’s decline in U.S. inventories.<\/p>\n

Brent crude futures were down 43 cents, or 0.49%, at $86.91 a barrel by 0855 GMT while U.S. West Texas Intermediate (WTI) crude futures fell 49 cents, or 0.58%, to $83.39 in trade thinned by the U.S. Independence Day holiday.<\/p>\n

In the previous session, Brent gained 1.3% to settle at $87.34 for its highest since April 30. WTI, meanwhile, had settled at an 11-week high of $83.88.<\/p>\n

Those gains followed a larger than expected decline in U.S. crude stocks. The U.S. Energy Information Administration (EIA) reported a 12.2 million draw in inventories. Analysts polled by Reuters had expected a draw of 680,000 barrels.
\nGiven dollar weakness and a brighter outlook for U.S. fuel demand after the EIA data, Thursday’s price weakness is not expected to last, said PVM analyst Tamas Varga.<\/p>\n

The drop in oil prices on Thursday morning is partly attributable to traders taking profits after recent gains, said OANDA analyst Kelvin Wong.<\/p>\n

However, German industrial orders fell unexpectedly in May, adding to signs that a recovery for Europe’s largest economy remains elusive.<\/p>\n

Demand concerns were heightened by U.S. data showing that first-time applications for U.S. unemployment benefits increased last week while jobless numbers also rose.<\/p>\n

Countering that, weaker economic data could hasten interest rate cuts by the U.S. Federal Reserve, analysts said, which could be supportive for oil markets.<\/p>\n

Softer U.S. data has already prompted markets to lift the probability of a September rate cut to 74% from 65%.<\/p>\n

Swiss bank UBS expects Brent crude to reach $90 a barrel this quarter, it said in a note to clients, citing OPEC+ production cuts and projected declines in oil inventories.<\/p>\n

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