Oil prices steady amid U.S. retail gains, face biggest weekly loss
Shafaq News/ Crude oil futuressteadied on Friday after strong U.S. retail sales data, but Chinese economicindicators remained mixed and prices were headed for their biggest weekly lossin more than a month on concerns about demand.
Brent crude futures gained 8 cents,or 0.1%, to $74.53 a barrel by 0338 GMT, while U.S. West Texas Intermediatecrude was at $70.82 a barrel, up 15 cents, or 0.2%.
Both contracts settled higher onThursday for the first time in five sessions after data from the EnergyInformation Administration (EIA) showed that U.S. crude oil, gasoline anddistillate inventories fell last week.
Brent and WTI are set to fall about6% this week, their biggest weekly decline since Sept. 2, after OPEC and theInternational Energy Agency cut their forecasts for global oil demand in 2024and 2025 and concerns eased about a potential retaliatory attack by Israel onIran that could disrupt Tehran's oil exports.
IG market strategist Yeap Jun Rongsaid while oil prices remained subdued on Friday, there were signs of near-termstabilisation after the market factored in fading geopolitical risks over thepast week.
"The recent run instronger-than-expected US economic data does offer further relief around growthrisks, but market participants are also side-eyeing any recovery in demand fromChina, given recent stimulus unleash," he said in an email.
U.S. retail sales increased slightlymore than expected in September, with investors still pricing in a 92% chancefor a Federal Reserve rate cut in November.
Meanwhile, third-quarter economicgrowth in the world's top oil importer China was at its slowest pace sinceearly 2023, though consumption and industrial output figures for September beatforecasts.
China's latest data dump offeredsomewhat of a mixed bag, with the country now officially falling short of its5% growth target for the year and the absence of a sizeable fiscal push seemsto leave some reservations on overall oil demand, said IG's Yeap.
China's refinery output alsodeclined for the third straight month as weak fuel consumption and thinrefining margins curbed processing.
Markets, however, remained concernedabout possible price spikes given simmering Middle East tensions, withLebanon's Hezbollah militant group saying on Friday it was moving to a new andescalating phase in its war against Israel after the killing of Hamas leaderYahya Sinwar.
Geopolitical risks, such asdevelopments in the Middle East, will continue to drive fears of supplydisruptions and in turn short-term spikes in oil prices, said PriyankaSachdeva, senior market analyst at Phillip Nova.
(REUTERS)
