Oil prices up marginally

10 May 2024 , 10:46 AM

Oil prices continued their upward trend on Friday due to evidence of an improving Chinese economy and the failure of negotiations to resolve hostilities in the Israeli-Hamas standoff.

U.S. West Texas Intermediate crude increased 41 cents, or 0.5%, to $79.64, while Brent futures increased 37 cents, or 0.4%, to $84.24 a barrel.

The prior session saw a little increase in oil prices to a one-week high due to data showing increased imports of crude oil into China in April and investors perceiving the slowing job market in the United States as a sign of potential interest rate reductions.

After declining in March, China’s imports and exports increased in April, indicating that demand has improved.

President of the San Francisco Federal Reserve Mary Daly stated on Thursday that she is confident that pricing pressures are continuing to decrease, but she acknowledged that there is a great deal of uncertainty in the U.S. about where inflation will go in the upcoming months.

Daly refrained from expressing her opinion on the likelihood of an interest rate drop by the US Federal Reserve this year. The U.S. central bank is expected to begin its easing cycle in September, according to financial markets.

Israeli Prime Minister Benjamin Netanyahu downplayed US President Joe Biden’s warning to withhold arms from Israel should it attack the southern Gaza Strip on Thursday, while Palestinian locals said that Israeli soldiers have bombarded portions of Rafah.

Late on Thursday, a senior Israeli official declared that Israel would carry out its operation in Rafah and other areas of the Gaza Strip as scheduled, following the conclusion of the most recent round of indirect negotiations to end hostilities in Gaza in Cairo.

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