{"id":7665,"date":"2023-09-15T14:22:02","date_gmt":"2023-09-15T14:22:02","guid":{"rendered":"https:\/\/roydadnaft.ir\/English\/?p=7665"},"modified":"2023-09-15T14:22:02","modified_gmt":"2023-09-15T14:22:02","slug":"oil-set-for-another-weekly-gain-on-tight-supply-and-china-optimism","status":"publish","type":"post","link":"https:\/\/roydadnaft.ir\/English\/7665\/","title":{"rendered":"Oil set for another weekly gain on tight supply and China optimism"},"content":{"rendered":"

RoydadNaft<\/a> – <\/span>\u00a0Oil was on track for a third weekly gain as supply tightness spearheaded by Saudi Arabian production cuts combines with optimism that the Chinese economy is finally turning a corner.<\/p>\n

Crude prices were little changed at 1248 GMT. Brent crude futures gained 8 cents to $93.78 a barrel while West Texas Intermediate (WTI) was up 14 cents at $90.3.<\/p>\n

Brent hit a 10-month high of $94.63 earlier in the session and has seen its biggest quarterly increase since Russia’s invasion of Ukraine.<\/p>\n

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Both benchmarks were up about 4% on the week.<\/p>\n

Saudi Arabia, boosted by OPEC+ partner Russia, this month extended 1.3 million barrels per day (bpd) of combined cuts to the end of the year, accelerating a drawdown in global inventories.<\/p>\n

The supply concerns have pushed the Brent and WTI benchmarks to their highest levels since November.<\/p>\n

China, the world’s biggest oil importer, is considered crucial to oil demand growth over the rest of the year. Its economy’s sluggish post-pandemic recovery has raised demand concerns, but industrial output and retail sales grew at a faster than expected rate in August.<\/p>\n

Data on Friday also showed oil refinery processing rose by nearly a fifth from a year earlier as processors kept run rates high to capitalise on high global demand for oil products.<\/p>\n

A brightening picture on borrowing costs is also emerging.<\/p>\n

Though U.S. headline inflation rose in August, the core figure moderated, foreshadowing a possible pause in interest rate hikes by the Federal Reserve next week. However, the U.S. central bank is likely leave the door open for a possible final increase in November.<\/p>\n

The European Central Bank implemented a tenth consecutive increase this week but implied that it was likely to stop there. On Friday, however, it said another hike was not off the table.<\/p>\n

“Betting on oil is becoming a favourite trade on Wall Street. No one is doubting the OPEC+ (oil output) decision at the end of last month will keep the oil market very tight in the fourth quarter,” said OANDA analyst Edward Moya.<\/p>\n

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