Oil prices fall amid weak demand concerns, Middle East ceasefire prospects
Date
7/25/2024 5:47:26 AM
(MENAFN) On Thursday, oil prices experienced a decline, as worries about weak demand in China, the world's largest crude importer, and expectations for a ceasefire in the Middle East outweighed the previous day's gains following a drop in U.S. inventories. By 0129 GMT, brent crude futures for September delivery had fallen by 38 cents, or 0.5 percent, settling at USD81.33 per barrel. Meanwhile, U.S. West Texas Intermediate (WTI) crude futures decreased by 33 cents, or 0.4 percent, to USD77.26 per barrel.
The previous day's price increase had been fueled by data from the U.S. energy Information Administration (EIA), which reported a significant 3.7 million barrel drop in U.S. crude inventories, much larger than the 1.6 million barrel decrease expected by analysts. Additionally, U.S. gasoline stocks fell by 5.6 million barrels, well above the anticipated 400,000-barrel draw, while distillate stocks dropped by 2.8 million barrels, contrary to the expected 250,000-barrel increase.
Despite these bullish inventory reports, the market remained under pressure. Hiroyuki Kikukawa, president of NS Trading, noted that investor caution was influenced by ongoing concerns about China's weak demand and the potential progress in ceasefire talks between Israel and Hamas. According to Chinese government data, oil imports and refinery throughput are expected to decline this year compared to 2023, reflecting lower fuel demand amid a slowing economy.
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