2024-01-26 08:19:16
Oil prices witnessed a marginal decline at the beginning of today’s trading, Friday, January 26 (2024), despite being prepared to achieve their largest weekly gains since October (2023).
Reports, seen by the specialized energy platform, attributed the trend to achieve large weekly gains to strengthening positive American economic growth, in addition to signs of rising fuel demand sentiment in China.
Oil prices rose by 3% at the end of trading yesterday, Thursday, January 25, continuing to reap gains, supported by fears of a lack of oil supplies in the markets, especially after data revealed that US crude inventories had declined more than expected during the week. the past.
Oil prices today
By 07:45 AM GMT (10:45 AM Mecca time), Brent crude futures, for March 2024 delivery, fell by about 43 cents, or 0.52%, to $82.01.
At the same time, US West Texas Intermediate crude futures, for March 2024 delivery, fell by about 61 cents, or 0.79 to $76.75 per barrel, according to figures seen by the specialized energy platform.
The Brent crude index was scheduled to close at an increase of 4.5% this week, while the US West Texas Intermediate crude index was scheduled to rise by 4.8%, according to what was published by the agency. Reuters.
The two main crude oil prices continue to achieve gains for the second week in a row and the largest weekly increase since the week ending on Friday, October 13, after the start of the conflict between Israel and Hamas in Gaza.
Oil price analysis
The limited decline in oil prices comes amid indications that oil supply disruptions in the Red Sea may ease, as China pressures Iran to curb attacks on ships in the waters off Yemen by the Houthi group allied with it.
Sources indicated that Chinese officials asked their Iranian counterparts to help curb the attacks. Beijing believes that the continuation of the attacks represents a risk that will harm trade relations between China and Iran.
Yesterday, Thursday, a leader of the Houthi group in Yemen announced that his group pledges to continue targeting ships linked to Israel until aid reaches the Palestinians in Gaza, according to statements monitored by the specialized energy platform.
In turn, market analyst at IG in Singapore, Yap Jun Rong, believes that the previous intervention of American and British forces in the Red Sea did not prevent the attacks, but in return, it prompted investors to price in the ongoing turmoil.
These disruption concerns are evident in the market structure of Brent crude futures; The future first-month premium on the sixth-month contract rose to $2.53 per barrel, the highest level since last November.
Demand sentiment improved after data showed on Thursday that the economy of the United States, the world’s largest oil consumer, expanded more quickly than expected during the fourth quarter of 2023, at a time when China, the world’s second largest oil consumer, announced a significant reduction in bank reserves to stimulate… Economic growth.
OANDA market analyst Calvin Wong believes that oil markets – driven by technical factors – have entered a phase of a short-term upward trend, explaining that oil prices have witnessed a follow-up to more positive momentum, after increased liquidity easing from the Chinese central bank.
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