The price of oil rose slightly, but is preparing to record a third weekly drop in a row amid concerns about weak demand in China and expectations of a ceasefire agreement between Israel and Hamas. Since the beginning of the week, Brent prices have fallen by 0.3%, and the price of WTI oil has fallen by 2.2%.
Analysts said that the latest Chinese data indicated that in June, apparent oil demand fell 8.1% to 13.66 million barrels per day, prompting concerns about consumption.
Prices also declined due to increased hopes for an end to the war in the Gaza Strip. Negotiations on a ceasefire have been underway for several months. U.S. officials believe that the parties are closer than ever to an agreement on a six-week cease-fire in exchange for the release of Hamas women, sick, elderly and wounded hostages.
Meanwhile, yesterday's US data slightly improved investor sentiment. The report showed that GDP grew by 2.8% in the 2nd quarter as consumers spent more and businesses increased investments. Economists had predicted that the economy would expand by 2%. At the same time, inflationary pressures eased, which maintained expectations that the Federal Reserve would cut the rate in September. Lower interest rates tend to stimulate economic activity, which can increase demand for oil.