English
Oil declines by about 3% upon settlement and achieves weekly losses for the second time in a row
Oil prices fell during trading on Friday, July 19, by more than two dollars at settlement, with renewed hopes for reaching a ceasefire in the Gaza Strip, and the rise of the dollar also contributed to increasing pressure on prices.
Brent crude futures fell $2.48, or 2.91%, to $82.63 per barrel upon settlement, achieving a weekly loss for the second week in a row of 2.82%.
US crude futures also fell by $2.69, or 3.25%, to $80.13 per barrel upon settlement, achieving a weekly loss for the second week in a row of 2.53%.
This comes after US Secretary of State, Anthony Blinken, said on Friday that the long-awaited ceasefire between Israel and the Palestinian Islamic Resistance Movement “Hamas” is on the horizon, according to Reuters.
Blinken stated: “I believe that we are within the ten-yard zone and heading towards the ultimate goal of an agreement that will result in a ceasefire and the return of the hostages to their homes and put us on a better path to trying to achieve lasting peace and stability.”
Reaching a ceasefire increases the possibility of the Yemeni Houthi group easing its attacks on commercial ships in the Red Sea, as the group announced that it is launching attacks in support of the Palestinians in the war in the Gaza Strip.
The dollar index rose after stronger-than-expected data on the labor market and manufacturing in the United States this week. The rise of the dollar leads to a decrease in demand for oil denominated in the US currency from holders of other currencies.
Chinese officals said on Friday that the list of economic goals reaffirmed at the end of a major Communist Party meeting this week included “a large number of complex contradictions,” indicating a bumpy road ahead for policy implementation.
The Chinese economy grew at a slower-than-expected pace of 4.7% in the second quarter, according to official data, raising concerns about demand for oil in the country.
