LONDON, July 26 — Oil prices slipped today and were on track for a third consecutive weekly decline, pressured by muted demand in China and hopes of a Gaza ceasefire deal that could ease Middle East tensions and accompanying supply concerns.
Brent crude futures for September dipped 84 cents or 1.02 per cent to US$81.53 a barrel by 1320 GMT. US West Texas Intermediate crude for September fell 78 cents, or one per cent, to US$77.50.
For the week, Brent has been trading down over one per cent while WTI has been down more than two per cent.
Recent data, such as July 20 figures showing that China’s total fuel oil imports dropped 11 per cent in the first half of 2024, have raised concerns about the wider demand outlook in China.
“Macro issues, including China, are weighing down on prices. It seems that the whole commodity sector is under pressure because of economic headwinds in China,” said PVM oil analyst Tamas Varga.
Concerns about the state of the Chinese economy, the world’s top crude importer, remain elevated and could intensify if the Chinese PMIs next week continue to paint a blurry picture, said brokerage XM senior investment analyst Charalampos Pissouros.
In the Middle East, hopes of a ceasefire in Gaza have been gaining momentum.
A ceasefire has been the subject of negotiations for months, but United States (US) officials believe the parties are closer than ever to an agreement for a six-week ceasefire in exchange for the release by Hamas of female, sick, elderly, and wounded hostages.
Varga added that oil price declines were capped by threats to production from Canadian wildfires, a large US crude stocks draw and continued hopes of a September cut to US interest rates after strong economic data.
— Reuters
