Global Oil Prices Experience Slight Increase After Three Weeks of Decline

Global oil prices have experienced a modest increase on Friday morning following a three-week period of consecutive declines. This uptick comes amid ongoing changes in energy consumption patterns and potential geopolitical developments.

Crude oil prices for September delivery rose by 12 cents, or 0.2 percent, reaching $82.49 per barrel. Similarly, West Texas Intermediate (WTI) crude saw an increase of 13 cents, or 0.2 percent, bringing its price to $78.41 per barrel.

The recent rise in oil prices follows a slight uptick observed on Thursday, attributed to better-than-expected economic performance in the US for the second quarter. Despite this, both benchmark oil prices have fallen by approximately 5 percent over the past three weeks, with WTI experiencing a drop of more than 2 percent.

Analysts have identified several factors influencing these price movements:

1. Increased Electric Vehicle Usage in China: The growing adoption of electric vehicles (EVs) in China has led to a decrease in demand for gasoline and diesel. In June, China's oil demand fell by 8.1 percent to 13.66 million barrels per day.
2. Geopolitical Developments: There is cautious optimism regarding a potential ceasefire agreement in the Gaza conflict, which may contribute to stabilizing the situation in the Middle East and potentially affecting oil market dynamics.

As the market continues to respond to these factors, observers will be watching closely for further developments in both global energy consumption and geopolitical events that may impact oil prices.

Source: Reuters