Oil prices rose on August 2 but are set for a fourth consecutive weekly decline due to disappointing global fuel demand growth overshadowing fears of supply disruptions in the West Asia.
Brent crude futures increased by 0.4 percent to $79.85 a barrel, while US West Texas Intermediate (WTI) crude futures rose 0.5 percent to $76.69. Despite the gains, Brent futures are on track to fall 1.7 percent this week, and WTI futures are set to drop 1.1 percent, marking the longest losing streak for both benchmarks since December.
Weak manufacturing activity across the United States, Europe and Asia has heightened concerns of a sluggish global economic recovery, impacting oil consumption. Notably, China's falling manufacturing activity and lower import and refinery activity data for June have added to these concerns.
Analysts at FGE highlighted ongoing worries about Chinese oil demand following weaker-than-expected June data.
Asia's crude oil imports hit a two-year low in July due to weak demand in China and India, though FGE analysts noted a positive outlook for Chinese imports due to strategic purchases and a recovery in refining rates.
Oil investors remain vigilant over developments in West Asia, where recent killings of senior leaders of Iran-aligned terror groups Hamas and Hezbollah have raised fears of a broader conflict that could disrupt supplies. FGE noted that recent events have jeopardized Israel-Hamas ceasefire talks and increased the likelihood of region-wide conflict.
(With inputs from Reuters)
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