Oil prices show mixed performance amid U.S. demand, profit-taking concerns
Date
6/30/2024 4:13:50 AM
(MENAFN) Over the past week, oil prices experienced mixed performance, with a notable decline on Friday driven by weak fuel demand in the United States and the initiation of profit-taking operations as the second quarter drew to a close. Despite these fluctuations, key inflation data for May sparked optimism that the U.S. Federal Reserve might begin cutting interest rates this year.
Throughout the week, brent crude saw a marginal rise of 0.02 percent, whereas West Texas Intermediate (WTI) crude futures experienced a slight drop of 0.2 percent. Specifically, Brent crude futures for August, which expired on Friday, edged up by two cents to settle at USD86.41 a barrel. However, the September Brent contract declined by 0.3 percent, closing at USD85 a barrel. Meanwhile, U.S. WTI crude futures fell by 20 cents, or 0.24 percent, ending the week at USD81.54 a barrel. Despite these variations, both Brent and WTI posted gains of approximately 6 percent over the month.
The Energy Information Administration's monthly oil supply report, released on Friday, highlighted an increase in U.S. oil production and demand, reaching the highest levels in four months as of April. However, gasoline demand dropped to 8.83 million barrels per day, marking its lowest point since February. Analysts attributed the end-of-quarter price declines to traders engaging in profit-taking after significant price surges earlier in the month. Moreover, data revealed that the U.S. personal consumption expenditures price index, a key inflation measure favored by the Federal Reserve, remained stable in May, aligning with market expectations and raising hopes for an interest rate cut in September.
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