Oil Updates – prices set for third weekly decline, pressured by Gaza ceasefire hopes

Brent crude futures for September dipped 56 cents to $81.81 a barrel by 2:50 p.m. Saudi time. Shutterstock
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LONDON: Oil prices slipped on Friday and were on track for a third consecutive weekly decline, pressured by muted demand in China and hopes of a Gaza ceasefire deal that could ease Middle East tensions and accompanying supply concerns.

Brent crude futures for September dipped 56 cents to $81.81 a barrel by 2:50 p.m. Saudi time. US West Texas Intermediate crude for September fell 40 cents to $77.88.

For the week, Brent is trading down almost 1 percent while WTI is down more than 2 percent.

Recent data, such as July 20 figures showing that China’s total fuel oil imports dropped 11 percent in the first half of 2024, have raised concern about the wider demand outlook in China.

In the Middle East, hopes of a ceasefire in Gaza have been gaining momentum.

A ceasefire has been the subject of negotiations for months, but US officials believe the parties are closer than ever to an agreement for a six-week ceasefire in exchange for the release by Hamas of female, sick, elderly and wounded hostages.

Oil price declines were capped, however, by threats to production from Canadian wildfires, a large US crude stocks draw and continued hopes of a September cut to US interest rates after strong economic data, said PVM oil analyst Tamas Varga.