Both benchmarks fell nearly 2% last Friday as investors tempered expectations of demand growth from China, but ended the week largely unchanged from a week earlier after a batch of U.S. data last week showed inflation was moderating and retail spending was robust.
“The oil market is struggling to retain its recently recaptured $80/bbl floor as the recent string of weak macroeconomic indicators reassert their downward pressure while geopolitical concerns appear to fade into the background,” said Harry Tchilinguirian, head of research at Onyx Capital Group.
“The American Petroleum Institute reported a significant drawdown in U.S. crude inventories of 5.2 million barrels, far more than a forecasted decline of 2 million. The data signalled that oil demand remains healthy,” said Danish Lim, investment analyst at Phillip Nova.
Oil prices rose for a fifth consecutive session on Monday, extending gains from the previous week’s more than 3% rise, as U.S. recession fears eased while geopolitical tensions in the Middle East supported prices.
Oil prices ticked up on Friday and were on course for a weekly gain of more than 3% as positive economic data and signals from Fed policymakers that they could cut interest rates as early as September eased demand concerns, while fears of a widening Middle East conflict continue to raise supply risks.
Oil prices edged up on Thursday after U.S. jobs data eased demand concerns and war in the Middle East helped prices recover for a third consecutive session, having slumped at an eight-month low on Monday.
Oil prices are finding a floor as concern mounts that Iran, a major Middle Eastern producer, may retaliate against Israel and the U.S. following the assassination of a Hamas leader in Tehran and an Israeli attack that killed a Hezbollah commander in Lebanon, potentially leading to a wider regional war.
The World Gold Council released its quarterly report last week and the industry group reported total demand of 1,258.2 metric tons in the second quarter, the highest on record for a second quarter and some 4% above the same period in 2023.
Oil prices fell by more than $2 on Friday, set for their fourth straight weekly decline after data showed the U.S. economy added fewer jobs than expected last month, and as weak Chinese economic further pressured investor sentiment.
Gold prices steadied in Asian trade on Thursday after surging close to record highs in the prior session after the Federal Reserve flagged the possibility of an interest rate cut in September.
