Brent crude rises above $84 per barrel as demand rises

Friday, May 10, 2024 - 18:08
Point Trader Group

Brent crude oil rose above $84 per barrel during trading on Friday, May 10, after the release of data this week showing an increase in demand in the two largest crude consuming economies in the world, the United States and China, and geopolitical tensions in the Middle East also contributed to supporting prices.

Brent crude futures increased 33 cents to $84.21 per barrel, and US West Texas Intermediate crude rose 42 cents to $79.68, at 1314 GMT.

Crude oil inventories in the United States decreased due to increased refinery work, coinciding with data issued on Thursday, May 9, which showed that China’s oil imports in April were higher than last year’s imports.

Chinese exports and imports returned to growth in April after declining in March, indicating improved demand.

Attention will be focused on the US inflation data released next week, as it will affect the US Federal Reserve’s course on interest rates.

It is increasingly likely that the European Central Bank will start cutting interest rates in June.

The conflict continues in the Middle East as well, after Israeli forces bombed areas in the city of Rafah, south of the Gaza Strip, on Thursday, and no progress was made in the last round of ceasefire negotiations in Gaza.

There is also still the possibility of a broader conflict erupting in the region, especially from Iran, which supports the Palestinian Hamas movement and is a major oil producer.

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