2023-07-27 17:49:26
An offshore oil platform
Oil prices rose, Thursday, with Brent crude exceeding levels of $84 a barrel during the session, for the first time since April, supported by tight supplies following OPEC + production cuts, and a renewed upward trend with expectations of Chinese demand and global growth.
Crude oil recorded four consecutive weekly gains, amid expected tight supplies due to production cuts by the Organization of the Petroleum Exporting Countries (OPEC) and its allies.
Analysts at UBS said, “We see the oil market is undersupplied. We maintain a positive outlook and look for Brent crude to rise to the $85-$90 per barrel range over the coming months.”
However, oil fell on Wednesday, following data showed that US crude inventories fell much less than expected.
And the increasing expectations that central banks may be nearing the end of monetary policy tightening campaigns have increased risk in financial markets, and these expectations greatly enhance global growth expectations and energy demand.
On the other hand, the growth rate of the US economy jumped in the second quarter of this year to 2.4 percent, in a strong surprise to the markets, following expectations that it would slow to 1.8 percent, as the flexibility of the labor market supported consumer spending, while companies boosted investment in equipment, which is what It may keep recession out of the economy.
“With interest rates either at or near a peak amid growing views that a recession will be averted, risky assets like oil are becoming increasingly attractive,” said Jim Ritterbusch, president of Ritterbusch & Co. Research.
On Thursday, the European Central Bank raised interest rates for the ninth time in a row.
Priyanka Sachdeva, an analyst at Philip Nova, said that China’s pledge Monday to strengthen policy support for the economy stimulated hopes of renewed demand for oil from the world’s largest importer of crude.
price movements
Brent crude rose $ 1.22, or 1.48 percent, to $ 83.80 a barrel by 17:30 GMT, following it had exceeded levels of $ 84 a barrel during the session.
While Nymex crude rose $1.31, or 1.68 percent, to $80.10 a barrel.
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