The price of oil increased by about 0.6%, but is preparing to record a fourth consecutive weekly drop amid signs of weak growth in global fuel demand.
Today's price increase was caused by the negative dynamics of the US currency and ongoing geopolitical tensions. The US Dollar Currency Index (DXY), which tracks the dynamics of the dollar against six currencies (euro, swiss franc, yen, canadian dollar, pound sterling and swedish krona) fell by 0.27% to 104.14.
Both benchmarks (Brent and WTI) have fallen by about 7.3% over the past four weeks (the longest streak of consecutive weekly losses this year), as disappointing Chinese economic data, as well as weak manufacturing PMI indices in Asia, Europe and the United States, increased concerns about the global economic recovery and pointed to a weakening outlook for oil demand. Still, futures remain modestly higher this year, helped by expectations that monetary easing in the US will boost consumption, with Fed Chair Powell saying an interest rate cut could come as soon as September.
Oil investors are also cautiously following developments in the Middle East, where the assassination of senior leaders of the Hamas and Hezbollah groups has raised fears that the region could be on the verge of a full-scale war, which in turn could cause disruptions in oil supplies.