Oil prices stabilize amid mixed economic signals from China, geopolitical tensions
Date
6/25/2024 5:28:57 AM
(MENAFN) On Tuesday, oil prices showed minimal change as mixed signals about China's economic recovery tempered concerns over supply disruptions due to Middle Eastern tensions and Ukrainian attacks on Russian refineries. By 0015 GMT, brent crude futures for August delivery saw a slight increase of seven cents, or 0.08 percent, reaching USD86.06 per barrel ahead of the contract's expiration later in the week. The more actively traded September contract rose by eight cents, or 0.09 percent, to USD85.23. Similarly, US crude futures edged up by 11 cents, or 0.13 percent, to USD81.74 per barrel. Both benchmarks had risen approximately three percent the previous week, marking two consecutive weeks of gains.
Despite these gains, concerns about the economic outlook for China, the world's second-largest economy, have intensified. China's retail sector faces significant near-term challenges following a lackluster mid-year online shopping festival. Consumers remain cautious about spending due to fears over personal wealth, influenced by a downturn in the real estate sector, stagnating wage growth, and high youth unemployment rates. These issues threaten China's ability to achieve its stated economic growth target of "about five percent" for the year.
In the geopolitical arena, the situation remains tense. On Monday, Israeli air strikes targeted relief supplies in the Gaza Strip, resulting in the deaths of at least 11 Palestinians, according to medical sources. Additionally, Israeli tanks continued operations in the city of Rafah in the south and redeployed to northern areas previously controlled by Israel. These ongoing conflicts add to the uncertainty surrounding global oil supplies, contributing to the complex dynamics affecting oil prices.
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