Oil prices continue to rise for the second week on signs of improving demand

Oil prices continue to rise for the second week on signs of improving demand



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Crude Oil Futures There was no significant change in it on Friday, but amid signs of improvement, it is on its way to rising for the second week as well. demand and declining oil and fuel reserves in the United States, the world's biggest oil consumer.
Brent futures Crude futures for August settlement fell 13 cents to $85.58 a barrel by 0927 GMT, while US West Texas Intermediate crude futures for August delivery fell 10 cents to $81.19 a barrel.
Prices have risen nearly 5% this month to their highest in more than seven weeks.
“As the latest data shows, seasonal demand has increased.” EIA data“Renewed tensions between Israel and Hezbollah, as well as the hurricane season, could keep prices firm into the summer,” Citi analysts said in a note.
US government data released on Thursday showed total product supply, a proxy for the country's oil demand, rose by 1.9 million barrels per day (bpd) to 21.1 million bpd in the week ended June 14.
Data from the Energy Information Administration (EIA) showed US crude oil inventories fell by 2.5 million barrels during the week to 457.1 million barrels, while analysts had expected a decline of 2.2 million barrels.
Gasoline stockpiles fell by 2.3 million barrels to 231.2 million barrels, the EIA said, while forecasts were for a 600,000 barrel increase.
The prospect of demand elsewhere also helped push prices higher.
“Signs of strong demand in Asia also boosted sentiment. Oil refineries across the region are bringing back some idle capacity after maintenance,” analysts at ANZ Research said.
The head of Lebanon's Hezbollah this week threatened a full-blown conflict with Israel if a cross-border war broke out, and for the first time also threatened EU member Cyprus.
Prices were impacted by US data released on Thursday that showed a drop in new unemployment claims, which could lead the Federal Reserve to keep interest rates unchanged. Higher interest rates typically limit economic growth and in turn also limit oil demand.




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