(MENAFN- The Peninsula)
The Peninsula
DOHA: Oil prices settled down nearly 2% on Friday, as investors tempered expectations of demand growth from top oil importer China. brent crude futures fell $1.36, or 1.7%,
to settle at $79.68 per
barrel.
US West Texas Intermediate crude futures declined by $1.51, or 1.9%, to $76.65.
On Thursday, data from China showed its Economy lost momentum in July, with new home prices falling at the fastest pace in nine years, industrial output slowing and unemployment rising.
That has stoked worries among traders about a slump in demand from the top oil importer, where refineries sharply cut crude processing rates last month on tepid fuel demand.
The Organization of the Petroleum Exporting Countries on Monday cut its forecast for this year's oil demand growth, citing softness in China.
The Paris-based International Energy Agency also cited weak demand in China when it slashed its 2025 forecasts on Tuesday.
Oil futures rallied at the start of the week as traders braced for retaliation by Iran against Israel over the assassination of a Hamas leader, Ismail Haniyeh, in Tehran last month.
However, some of that risk was priced out because Iran has not struck yet.
Asian spot liquefied natural gas (LNG) prices rose to their highest in over eight months, with warmer temperatures across the region boosting power demand for cooling purposes.
The average LNG price for October delivery into north-east Asia was at $14.10 per million British thermal units (mmBtu), industry sources estimated.
In Europe, the TTF gas price reached its highest level in eight months at $12.70 per mmBtu. Increased demand for gas - from Asia as well as Europe - combined with geopolitical tensions in the Middle East and Russia-Ukraine have pushed the gas price to the upper end of the range.
European gas storages were last seen 88.47% full, close to their 90% target.
In the US, natural gas futures dropped more than 3% to a one-week low on Friday on forecasts for less hot weather than previously expected and oversupply of gas in storage, even though a federal weekly report showed a surprise draw in inventories this week.
The US Energy Information Administration on Thursday said utilities drew 6 billion cubic feet (bcf) of gas from inventories during the week ended Aug. 9, decreasing stockpiles to 3.264 trillion cubic feet (tcf).
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