Oil Prices Steady Despite Concerns
Investing.com — Oil prices steadied Friday, aided by positive U.S. inventory data, but were on track for their worst week since early September amid rising worries about weak demand.
At 08:30 ET (12:30 GMT), Brent oil futures fell 0.1% to $74.41 a barrel, while West Texas Intermediate crude futures rose 0.1% to $70.69 a barrel.
China GDP Grows as Expected, Stimulus in Focus
Data released earlier Friday indicated that China’s GDP grew 4.6% year-on-year, as expected, although quarter-on-quarter growth slightly missed projections. Year-to-date GDP now stands at 4.8%, remaining below the government’s 5% annual target.
This highlights the necessity for additional stimulus from Beijing, given that the world’s largest oil importer is facing ongoing deflation, weak private spending, and a prolonged property market crisis.
Despite new measures announced in recent weeks, investors expressed disappointment over the lack of clarity regarding the implementation, timing, and scale of these initiatives.
US Inventories Fall
The crude market saw some support after data showed U.S. inventories decreased in the past week, providing a positive signal about demand from the world’s largest fuel consumer.
Attention is also focused on Israel’s retaliation against Iran following a strike earlier in October. Concerns that this strike might disrupt Iranian oil supplies led traders to apply a risk premium to crude prices.
Oil Heads for Weekly Losses on Demand Fears
However, both benchmark contracts are poised to lose approximately 6% this week, marking their worst weekly performance since early September, primarily driven by heightened concerns regarding weak demand. Both the International Energy Agency and the Organization of Petroleum Exporting Countries have recently downgraded their annual forecasts for demand growth, citing sluggish Chinese demand and minimal improvements in recent economic indicators.
*(Ambar Warrick contributed to this article.)
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