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KUWAIT CITY, June 30: In recent market developments, oil prices exhibited mixed movements influenced by various factors including demand trends, geopolitical concerns, and economic indicators, reports Al-Seyassah daily. For example, Brent crude futures for August, which expired recently, saw a slight increase of two cents to settle at $86.41 per barrel. However, the September contract for Brent fell slightly by 0.3% to $85 per barrel. On the other hand, U.S. West Texas Intermediate (WTI) crude futures dropped by 20 cents or 0.24%, closing at $81.54 per barrel.
Brent crude experienced a minimal increase of 0.02% for the week. In comparison, WTI crude futures decreased by 0.2 and both the crude benchmarks posted gains of approximately 6% for June, rebounding from consecutive months of decline earlier in the year. For the first half of 2024, Brent crude prices rose by 13.45%, and Nymex crude prices increased by 13.75%. Despite robust oil production and overall demand in the United States reaching its highest level in four months in April, gasoline demand notably declined to 8.83 million barrels per day, marking its lowest level since February. This decline in gasoline demand likely contributed to the cautious sentiment among traders.
Analysts have observed profit-taking activities among traders towards the end of the second quarter, following earlier price surges. Moreover, the stabilization of the U.S. personal consumption expenditures price index in May, aligning with expectations, fueled optimism that the Federal Reserve might consider interest rate cuts later in the year to stimulate economic growth. The CME Fed Watch tool indicated a growing expectation among traders, with a 64% probability assigned to a September interest rate cut, up from 50% in the previous month.
Lower interest rates could potentially boost consumer spending and consequently support oil prices. Geopolitical concerns continued influencing market sentiment, adding to the backdrop of price movements amidst global economic uncertainties. Overall, while oil prices experienced volatility amid mixed demand signals and profit-taking behaviors, market participants closely monitor economic indicators and geopolitical developments for further insights into future price trends and policy decisions by major central banks.
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