Will oil prices rise today for the fifth week in a row?
Oil prices are on track for a fifth straight week of gains as they benefit from more supportive factors and positive data. West Texas Intermediate crude futures for August delivery managed to close above $80 per barrel for the first time in three months, as did Brent futures, which closed at 83.79.
On the other hand, this morning we witnessed some declines that led the WTI crude oil price towards the $ 79.50 per barrel level, the peak of the declines at 12:35 GMT, according to a market analysis from XS.com.
As for economic data, yesterday, US GDP figures were released, which increased by 2.4% in the second quarter of this year compared to the second quarter of last year, more than the expected 1.8%.
There was also positive data from the US labor market, durable and capital goods orders, and pending home sales. These figures followed Jerome Powell’s speech after the Federal Open Market Committee’s interest rate decision, in which he praised the strength of the U.S. economy and spoke of the possibility of achieving a soft landing for inflation without plunging the economy into recession.
As for the Chinese economy, a meeting of the ruling party’s executive committee was held this week, bringing some positive news for the oil markets.
The Chinese government has pledged to support households by subsidizing spending on cars, household goods, tourism and sports. This comes after the recent slowdown in the Chinese economy.
As for the future, markets are waiting for members of the Group of Petroleum Exporting Countries (OPEC) to make a voluntary cut in oil production on August 4, with the Kingdom of Saudi Arabia expected to make further production cuts.