Oil prices rose today but were set for a fourth successive weekly decline, as signs of disappointing global fuel demand growth outweighed fears of supply disruptions.
Brent crude futures gained 55 cents, or 0.7%, to $80.08 a barrel this morning, while US West Texas Intermediate crude futures CLc1 rose 57 cents, or 0.8%, to $76.89.
Both benchmarks have declined about 7.3% over the last four weeks in the longest streak of consecutive weekly losses this year.
Disappointing economic data from top oil importer China and a survey showing weaker manufacturing activity across Asia, Europe and the US raised the risk of an underpowered global economic recovery that would weigh on oil consumption.
“China’s road traffic saw a seasonal decline for the third consecutive year,” analysts at ANZ said in a note. “Weaker US economic data suggested weakening oil demand prospects.”
Falling manufacturing activity in China also inhibited prices, adding to concerns about demand growth after June data showed imports and refinery activity were lower than last year.
Asia’s crude oil imports dropped in July to the lowest in two years, sapped by weak demand in China and India, data from LSEG Oil Research showed.
Oil investors are also cautiously watching developments in the Middle East, where the killing of senior leaders of Iran-aligned militant groups Hamas and Hezbollah stoked fears that the region could be on the brink of all-out war, threatening to disrupt supplies.
Article Source – Oil prices set for fourth weekly fall as demand concerns weigh – RTE