Oil achieves its best weekly performance after demand growth expectations Economy
According to Al Jazeera:
Brent crude futures prices rose today, Friday, and are heading towards recording their best weekly performance in more than 4 months, after expectations of growth in demand for crude oil and fuel this year.
Brent crude futures rose 53 cents to $83.28 a barrel. US West Texas Intermediate crude futures also rose 41 cents to $79.03 per barrel.
The two benchmarks gained approximately 4.5% during the week, which will push Brent to record its highest weekly rise since the week ending last February 9.
US West Texas Intermediate crude is also heading towards achieving its largest weekly rise since the week ending last April 5.
Oil prices fell last week after the OPEC Plus alliance, which includes the Organization of the Petroleum Exporting Countries (OPEC) and its allies led by Russia, decided to gradually end production cuts starting next October.
But sentiment changed this week after the International Energy Agency, the US Energy Information Administration and OPEC issued an update on the balance between supply and demand for oil at the global level this year.
The Energy Information Administration raised its estimates for oil demand growth slightly, while OPEC maintained its forecast for relative demand growth at 2.2 million barrels per day. The International Energy Agency lowered its demand growth forecast to less than one million barrels per day.
Analysts at Commerzbank said that the three parties expected a supply deficit until at least the beginning of the winter season.
The rise in prices calmed somewhat this week after the Federal Reserve (the US central bank) kept interest rates unchanged, while ruling out the start of interest rate cuts before December.
Russia also confirmed its commitment to its production pledges in the OPEC Plus agreement, after saying that it had exceeded its quota in May.
The market's focus is also on the ceasefire talks in the Gaza Strip, which may allay fears about the potential disruption of oil supplies from the region.
