Crude oil little changed after volatile week with China demand fears lingering

Crude oil futures ended the week little changed as lingering concerns over the outlook for demand in China and easing geopolitical risks offset economic data showing slowing inflation and strong retail sales pointing to resilient consumer spending.

“It was Oil markets had a volatile week, said Andrew Lipow, an energy consultant: “On the one hand, there were fears of supply disruptions due to a wider war in the Middle East, but on the other hand, slowing growth in China has revised demand expectations.”

In the Middle East, two days of talks aimed at reaching a ceasefire between Israel and Hamas and the release of hostages in Gaza were reported to have made progress, and the talks are expected to delay an expected Iranian attack on Israel that has added to the recent risk premium in oil prices.

“If the situation in the Middle East does not escalate further, Oil price likely to remain steadyAnalysts at Commerzbank said:

Data from China this week showed its economy lost momentum in July, prompting the country’s refiners to sharply cut crude processing rates last month due to weak fuel demand.

OPEC and the International Energy Agency this week cited weakness in China in lowering their oil demand growth forecasts.

But oil prices were supported by a series of U.S. data for July, including a 2.9% year-on-year rise in the consumer price index and a 0.1% rise in the producer price index.

US Light Crude Oil (CL1:COM) for September delivery closed -0.2% The price of a barrel of US crude oil for October delivery fell to $76.65 per barrel this week, including a 1.9% loss on Friday, and Brent crude for October delivery (CO1:COM) ended the week almost flat at $79.68 per barrel, including a 1.7% decline on Friday.

The New York Natural Gas Contract (NG1:COM) for September delivery also expired this week. -0.9% To $2.123/MMBtu, down 3.3% on Friday.

ETFs: (USO), (BNO), (UCO), (SCO), (USL), (DBO), (DRIP), (GUSH), (USOI), (UNG), (BOIL), (KOLD), (UNL), (FCG)

energy (New York: Canada: XLE), as represented by the Energy Sector Select SPDR Fund, ended the week +1.2%.

Top 10 Energy & Natural Resources Gainers Over the Past 5 Days: Skeena Resources (SKE) +46.7%Permanent Resources (PPTA) +43.4%Future Fuel (FF) +30.5%Osisco Development Company (ODV) +27.4%Prime Energy (PNRG) +22.6%Crowd mining (CNL) +21.3%IAG +18.7%New Gold (NGD) +17.9%Lithium Americas (LAC) +17.3%ORLA Mining Company +17.2%.

Top 5 Energy & Natural Resources Gainers Over the Past 5 Days: ZEO Energy (ZEO) -17.6%Hawaiian Electric Company (HE) -13.7%Piedmont Lithium (PLL) -10.5%Compass Minerals (CMP) -9.8%Green clean fuel (VGAS) -9.7%.

Source: Barchart.com