Crude oil prices fall amid weak Chinese demand, hopes of Gaza ceasefire
Date
7/28/2024 5:43:50 AM
(MENAFN) On Friday, both brent and U.S. crude futures experienced a significant decline, falling by around USD2 per barrel. This drop was primarily driven by weak demand from China and growing optimism for a ceasefire in Gaza, which might alleviate Middle Eastern tensions and associated supply concerns. By 14:56 GMT, Brent crude prices had decreased by USD1.81, or 2.2 percent, to USD80.56 per barrel, while U.S. West Texas Intermediate (WTI) crude fell by USD1.84, or 2.36 percent, to USD76.44 per barrel.
Over the week, Brent crude experienced a decline of over 1 percent, and WTI crude dropped by more than 2 percent. The downward trend was exacerbated by data released on Saturday, showing an 11 percent decrease in China's total fuel oil imports during the first half of the year. This data intensified concerns about future demand from China, a major consumer of crude oil. The reduction in Chinese demand contributed significantly to the overall weakness in the oil market, affecting prices globally.
Additionally, U.S. refiners are preparing to cut back on production as the summer vacation season concludes in early September. The market sentiment was also influenced by the potential for a ceasefire agreement in the Gaza Strip, which could ease regional tensions and impact the stability of oil supplies. The combined factors of declining Chinese demand, anticipated production adjustments by U.S. refiners, and hopes for geopolitical stability in the Middle East have all played a role in the recent drop in crude oil prices.
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