(London) Oil prices rose a little more on Friday to end the week up slightly, despite a sharp decline at the start of the week, as the decline in commercial reserves took precedence over concerns for the global economy.
Around 6:20 a.m., a barrel of Brent from the North Sea, for delivery in August, of which it is the last day of trading, took 0.35% to 75.40 dollars.
Its American equivalent, a barrel of West Texas Intermediate (WTI) for delivery the same month, rose 0.23% to 70.02 dollars.
Rising since Wednesday and figures showing a sharp decline in commercial crude reserves in the United States, before the summer season synonymous with travel and therefore high consumption, prices held up despite the contraction in manufacturing activity in China.
“It looks like the market wants to believe that the worst is behind it,” and that the global economy will hold up better than expected, said PVM analyst Tamas Varga, noting that US GDP for the first quarter was revised upwards on Thursday.
Demand concerns are weighing on oil prices: “Despite the gains of recent sessions, Brent is off to a fourth consecutive quarter of declines, which would be a record,” said Han Tan, an analyst at Exinity.
And according to him, “benchmark oil prices will come under pressure this summer as central bankers will continue to hike rates” to stem inflation.
“Until market fundamentals show a real supply shortfall in the second half of 2023, we should not bet on a sustainable price increase,” he concludes.
Many analysts believe that, although demand may weaken, supply should be further reduced, in particular due to voluntary production limits by the Organization of the Petroleum Exporting Countries and its allies (OPEC).