2023-07-25 04:10:00
oil production platform
Oil prices
Brent crude is close to $83 a barrel
Dubai – Al Arabiya.net
Posted on: July 25, 2023: 08:10 AM GST Last updated: July 25, 2023: 08:22 AM GST
Oil prices rose today, Tuesday, extending the gains made in the previous session, as indications of declining supplies and the Chinese authorities’ pledge to support the second largest economy in the world raised morale.
Brent crude futures rose 7 cents to $82.81 a barrel at 00:07 GMT, while US West Texas Intermediate crude rose 11 cents to $78.85.
Both benchmarks rose more than 2% in the previous day, reaching their highest close since April, according to Archyde.com.
They have already risen for four consecutive weeks, with expectations of diminishing supplies due to production cuts announced by the Organization of the Petroleum Exporting Countries (OPEC) and allies such as Russia, a group known as “OPEC +”.
In China, the world’s second-largest oil consumer, leaders pledged to intensify policies to support the economy amid a shaky post-COVID-19 recovery, with a focus on boosting domestic demand.
However, disappointing data in the Eurozone and the US confirmed weakness across the global economy.
A survey showed that business activity in the eurozone contracted much more than expected in July, with demand falling in the bloc’s dominant service industry, while factory output fell at the fastest pace since the onset of “Covid-19”.
In the United States, business activity slowed to a five-month low in July, dragged down by slower services sector growth.
Later on Tuesday, industrial data on US crude inventories will be released. Four analysts polled by Archyde.com estimated, on average, that crude stocks fell by regarding 2 million barrels in the week ending July 21.
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