Brent crude prices changed little on Friday, July 21 and are heading towards a flat end to the week after three straight weeks of gains, as markets weigh lower US crude inventories and the possibility of halting interest rate increases against weak Chinese economic data that could curb demand.
Brent crude futures rose 63 cents to $80.27 a barrel by 04:25 GMT, while US West Texas Intermediate crude rose 62 cents to $76.27 a barrel. Prices ended Thursday slightly higher.
For the week as a whole, Brent crude is heading for a 0.5% increase, while US crude is heading for a 1.1% increase. This means that the two benchmarks continued to rise for the fourth week in a row.
Over the course of the week, Brent crude is set to decline by 0.2%, while US crude is expected to rise by 0.4%.
And what supported prices was the decline in US crude stocks last week, supported by a jump in crude exports, the Energy Information Administration said on Wednesday.
In addition, recent data, such as the lower-than-expected inflation rate and moderate job growth, have convinced many investors and analysts that the expected rate hike by the US Federal Reserve this month will be the last in the current tightening cycle.
Higher interest rates could slow economic growth and lower demand for oil.
However, China’s weak economic data kept oil prices in check. The world’s second largest oil consumer this week reported disappointing GDP growth for the second quarter, raising the possibility that the economy will miss the government’s annual growth target of 5%.
