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Oil prices rose by about 1% on Friday, amid signs of slowing production in the United States, but the two benchmarks ended their longest streak of weekly gains in 2023 due to growing concerns about global demand growth.
Brent crude futures rose 68 cents, or 0.8%, to $84.80 a barrel upon settlement, and US West Texas Intermediate crude futures rose 86 cents, or 1.1%, to $81.25 a barrel upon settlement.
The two benchmarks rose on Friday, after data showed that the number of oil and natural gas rigs in the United States fell for the sixth consecutive week. The decline in US production could exacerbate the expected supply shortages for the remainder of the year.
The concerns are driven by supply cuts by the Organization of the Petroleum Exporting Countries and its allies (OPEC+), which has helped push oil prices up for seven straight weeks since June. Brent crude rose about 18%, while US West Texas Intermediate crude increased 20% in the seven weeks ending August 11.
However, oil prices fell this week by about 2% compared to last week, as the worsening real estate crisis in China increased concerns about the slowdown in the economic recovery in the country and reduced the risk appetite of investors.
“Investors remain nervous amid slowing global growth, and global supplies that remain tight,” said Rob Haworth, an official at US Bank Wealth Management. “Prices are likely to remain in a narrow range for the time being,” he added. (Reuters)
