Brent crude prices changed slightly today, Friday, and are heading toward ending the week stable, following gains over three consecutive weeks, as markets assess the decline in U.S. crude inventories and the possibility of halting interest rate increases, against weak Chinese economic data that could limit demand.
By 00:16 GMT, Brent futures rose three cents to $79.67 per barrel, while West Texas Intermediate crude increased nine cents to $75.74 per barrel. Prices recorded a slight increase at yesterday’s close.
Throughout the week, Brent is set to record a decrease of 0.2 percent, while U.S. crude is expected to rise by 0.4 percent. Supporting prices, U.S. crude inventories fell last week, aided by a surge in crude exports, according to the Energy Information Administration last Wednesday.
Additionally, recent data, such as lower-than-expected inflation and moderate job growth, has led many investors and analysts to believe that the anticipated interest rate hike by the Federal Reserve this month will be the last in the current tightening cycle.
However, rising interest rates could slow economic growth and reduce oil demand. Weak economic data in China, the world’s second-largest oil consumer, has restrained oil prices. This week, China reported disappointing GDP growth for the second quarter, increasing the likelihood that the economy will not meet the government’s annual growth target of five percent.
