2023-07-01 07:18:00
Amid fears of a global economic slowdown and declining demand for fuel
Dubai – Al Arabiya.net
Posted on: July 01, 2023: 11:18 AM GST Last updated: July 01, 2023: 12:08 PM GST
Oil prices closed higher in Friday’s session, but recorded a fourth quarterly loss in a row, as investors fear that slowing global economic activity will lead to a decline in demand for fuel.
Brent crude futures for August delivery, which expires on Friday, rose 56 cents, or 0.8%, to settle at $74.90. In the three months ending at the end of June, the contract finished down 6%.
US West Texas Intermediate crude also rose 78 cents, or 1.1%, to settle at $70.64 a barrel. It recorded its second consecutive quarterly decline, down nearly 6.5% in the last three months.
In the past few months, markets have been affected by inflationary pressures, rising interest rates in major economies and a slower-than-expected recovery in Chinese manufacturing and consumption.
As for Friday’s trading, the report of the US Department of Commerce, which showed that annual inflation rose last month at the slowest pace in two years, boosted crude prices.
Support also came from the sharp drop in US oil inventories last week.
Prices are receiving further support from Saudi Arabia’s plans to cut production by regarding an additional million barrels per day in July, in addition to the broader “OPEC +” agreement to limit supplies until 2024.
A Archyde.com survey of 37 economists and analysts showed that oil prices will find it difficult to gain momentum this year with the continued headwinds in the global economy.
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