Shimi Tejarat Naghshe Jahan Co.

The price of oil has risen for the second consecutive week.

Weekly News

Oil prices fell slightly on Friday but were on track for a second consecutive weekly rise due to signs of improving demand and declining oil and fuel inventories in the U.S., the world’s largest oil consumer.
Brent futures for August settlement were up to $85.24 a barrel, while U.S. West Texas Intermediate(WTI) crude futures for August delivery were up to $80.73.
Prices have risen about 5% this month, reaching their highest level in over seven weeks.

The data from the Energy Information Administration (EIA) and the American Petroleum Institute (API) showed a drawdown in U.S. crude stockpiles by 2.5 million barrels rose during the week to 457.1 million barrels, compared with analysts’ expectations for a fall of 2.2 million.
The latest weekly jobless claims report showed a decline in the number of people filing for jobless benefits for the first time, suggesting the labor market was going in a positive direction that could finally motivate the Fed to start cutting rates. Higher interest rates typically limit economic growth and, in turn, oil demand.
The American Automobile Association (AAA) projected this week that the holiday weekend would see a record 71 million people traveling by road and air, marking a 4.8% increase over last year’s July 4 weekend.
The hurricane season could also sustain price strength into the summer according to analysts.
Meanwhile, Signs of stronger demand in Asia bolstered market sentiment. Oil refineries across the region are bringing back some idled capacity after maintenance.
Also economic data coming out of China suggest more optimism for oil demand growth there. While Chinese industrial output came in below expectations, investment in manufacturing so far this year was up 9.6%.
Ukrainian drone attacks on Russia continued this week, leading to a fire ignited at an oil warehouse in the Rostov region of southern Russia. Ukrainian attacks on Russian refineries and other energy infrastructure have become a fixture this year, with drones the weapon of choice for conducting the strikes.
Conflicts in the Middle East continue, and the likelihood of an Israeli attack on Lebanon has risen.
The head of Lebanon’s Hezbollah this week pledged a full-on conflict with Israel in the event of a cross-border war and also threatened EU member Cyprus for the first time.
A stronger dollar and rising US Treasury yields pushed gold prices down more than 1% on Friday. The price of gold per ounce decreased by 1.61% to $2,321 and 98 cents today.
In June, business activity in the United States improved, leading to the highest level of employment gains in the past 26 months. Economic data released on Friday showed a decrease in unemployment benefit claims over the past week.
The dollar index rose by 0.2%, reaching its highest level in the past seven weeks. Consequently, purchasing gold becomes more expensive for holders of other currencies worldwide.

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