Singapore, August 2 (FFN) – Oil prices edged higher on Friday, with Brent crude surpassing $80 a barrel. However, the commodity is still on track for its fourth consecutive weekly decline. Market sentiment has been dampened by signs of weakening demand for oil from China. These factors have had a more significant impact on the market than recent developments in the Middle East and concerns about supply disruptions from the region.
Brent crude for October delivery reached $80.04 a barrel by 7:15 a.m. CET, a gain of 52 cents or 0.65%. Meanwhile, US West Texas Intermediate (WTI) crude for September delivery was trading at $76.84 a barrel, up 53 cents or 0.69%.
Despite the day’s gains, both benchmarks are set to post their fourth straight weekly decline. Over the past four weeks, prices have fallen by approximately 7.3%, marking the longest such streak this year.
Market dynamics have been significantly influenced by factors beyond the Middle East, particularly data from China, the world’s largest oil importer. Recent reports of a deteriorating manufacturing sector in China, as well as in other Asian, European, and US economies, suggest a weakening global economy, which in turn would reduce oil demand.
Importantly, oil imports into Asia declined in July, marking the steepest drop in two years, according to data from LSEG Oil Research. The firm’s economists attribute this decline to weaker demand from both China and India.
Table: Key Oil Price Data
| Indicator | Value | Change from Previous Close | Reason for Change |
|---|---|---|---|
| Brent Crude Price (October) | $80.04/barrel | +$0.52 (+0.65%) | Weakening demand from China, geopolitical tensions in the Middle East |
| WTI Crude Price (September) | $76.84/barrel | +$0.53 (+0.69%) | Weakening demand from China, geopolitical tensions in the Middle East |
| Weekly Change | -7.3% | Weakening demand, especially from China and India | |
| Reason for Decline | Deteriorating manufacturing activity in China and other countries, indicating weaker global demand |
Notes:
- Weakening demand from China: The world’s largest oil importer saw its biggest decline in oil imports in two years.
- Geopolitical tensions: The situation in the Middle East has less impact on oil prices than weaker demand.
- Weekly decline: Oil prices have recorded their fourth consecutive weekly decline, the longest such streak this year.
This table provides an overview of the current situation in the oil market. It focuses on the key factors influencing oil prices, namely weakening demand from China and geopolitical tensions in the Middle East.
