Oil prices rise slightly on Friday, face fourth straight weekly loss amid weak demand concerns
(MENAFN) Oil prices experienced a modest increase on Friday, with brent crude futures rising by 18 cents to USD79.70 per barrel and U.S. West Texas Intermediate (WTI) crude futures up by 16 cents to USD76.47. Despite this uptick, both Brent and WTI crudes are poised to record their fourth consecutive weekly loss, marking their longest losing streak of the year. Over the past month, oil prices have dropped by more than 7 percent, reflecting ongoing concerns about weak global demand growth.
The recent decline in oil prices has been influenced by economic data indicating sluggish manufacturing activity across major regions, including China, the United States, Europe, and Asia. In particular, China's slowdown in manufacturing has intensified worries about weaker demand growth, further exacerbated by a drop in imports and refinery activity as reported for June. Additionally, data from the London Stock Exchange Group's oil research division highlighted that Asia's crude oil imports fell to their lowest level in two years in July, driven by weak demand in key markets like China and India.
Amid these developments, OPEC+ ministers recently held a meeting and decided to maintain the current oil production policy. The alliance reiterated its plan to gradually ease production cuts starting in October, a strategy aimed at balancing the market amid fluctuating demand and supply dynamics.
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