Oil prices dipped on Thursday as a surprise build in U.S. stockpiles fuelled fears about slow demand from the world’s top oil consumer, though declines were capped by worries a potential expansion of the Gaza war may disrupt Middle East supplies.
Both contracts are still sitting on strong gains over the past two weeks, as persistent geopolitical tensions- Israeli strikes on Gaza and Ukrainian attacks on Russian refineries- kept traders pricing a risk premium into oil prices.
Oil prices were steady on Tuesday, easing only slightly from the previous session’s gains on escalating geopolitical tensions and expectations of improved fuel demand this summer, while investors awaited U.S. inflation data later this week.
“The chief underlying reason behind the price strength … is the growing confidence that global oil inventories will inevitably plunge during the summer in the northern hemisphere,” said Tamas Varga of oil broker PVM, referring to seasonal demand for oil products.
Crude oil futures were little changed on Friday but were set to rise for a second week amid signs of improving demand and falling oil and fuel inventories in the U.S., the world’s biggest oil consumer.
Brent and the U.S. benchmark have gained almost 4.5% over the week. That would mark Brent’s highest weekly rise in percentage terms since the week to Feb. 9. WTI is on course for the biggest weekly rise since the week to April 5.
Oil prices dipped slightly on Thursday in up-and-down trade, pressured by rising U.S. crude and fuel supplies and expectations of slow Federal Reserve rate cuts but supported by U.S. economic data showing an easing labor market and slowing inflation.
Gold prices could surge up to $3,000 over the next 12 months, Citi analysts said, as a combination of strong physical demand, central bank purchases, and macroeconomic factors continue to support a bullish outlook for the yellow metal.
Oil prices were largely steady on Tuesday, as investors waited for U.S. and China inflation data and the outcome of the Federal Reserve’s policy meeting to see how changing prices could hit demand.
Oil prices edged up on Monday, buoyed by hopes of rising fuel demand this summer, though gains were capped by a strengthening of the dollar on receding expectations of imminent cuts to U.S. interest rates.
