Oil prices saw an increase on Friday and were poised to conclude a strong week due to positive indications of demand in China, the leading oil importer. Meanwhile, the likelihood of an Israel-Hamas ceasefire seemed increasingly unlikely.
The decline in the U.S. labor market, coupled with a weaker dollar, supported crude prices.
Additionally, recent data revealing a reduction in overall U.S. oil inventories contributed to the upward trend.
Brent oil futures, expiring in July, advanced by 0.5 percent to reach $84.33 per barrel, while West Texas Intermediate (WTI) crude futures rose by 0.6 percent to $79.26 per barrel at 21:21 ET (01:21 GMT).
Both contracts were on track to achieve approximately 2 percent gains for the week, following significant losses in the previous week.
Read more: Oil prices rise on mixed Chinese trade data, Middle East tensions
Furthermore, additional favorable indicators of demand supported the oil market.
As anticipated, U.S. crude inventories declined in the previous week, aligning with the projected rise in refining and fuel demand, which is expected to follow the increased travel demand during the summer season.
China’s oil imports exhibited similar trends, declining compared to the previous month but remaining at levels similar to those observed last year.
Positive demand signals, coupled with the projected rise in travel demand during the summer, contributed to the decline in U.S. crude inventories.
However, data indicated that last week’s U.S. gasoline and diesel demand reached its lowest levels since the onset of the COVID-19 pandemic in 2020.
Nonetheless, the weaker dollar benefited crude prices, as weak readings in the U.S. labor market continued to emerge.
These readings further reinforced expectations that the Federal Reserve would commence interest rate cuts by September of this year.
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