Oil prices up, concerns about demand cap gains

Oil prices rose today, Friday, and were broadly stable during the week, as Saudi Arabia’s pledge to cut production helped calm concerns about demand growth.

By 0932 GMT, Brent crude futures rose 36 cents, or 0.5 percent, to $ 76.32 a barrel, and West Texas Intermediate crude rose 34 cents, or 0.5 percent, to $ 71.63 a barrel.

According to “Reuters”, the two benchmarks fell about a dollar on Thursday, compensating for some of their losses, which earlier exceeded three dollars, after Washington and Tehran denied the validity of a report by the Middle East Eye website stating that they were close to reaching a nuclear agreement, which is a matter of concern. It would return Iranian oil to global markets

Oil prices rose earlier in the week after Saudi Arabia pledged large production cuts, but the gains were pared after rising US fuel inventories and weak data on Chinese exports.

Concerns about a slow recovery in fuel demand in China outweighed expectations of tight supply and increased demand for oil as the United States enters the summer holiday season.

Although China’s economic recovery is slower than expected, India, the world’s third largest oil consumer, has managed to maintain economic momentum.

Strong factory activity helped boost India’s fuel consumption in May, pushing diesel sales to a record high

Some analysts expect a rise in oil prices if the Federal Reserve (the US central bank) does not raise interest rates at its next meeting on June 13 and 14.