Oil firms amid weak Chinese economic data, falling inventories

Brent crude prices changed slightly today, Friday, and are heading towards ending the week stable after gains for three consecutive weeks, as markets evaluate lower US crude inventories and the possibility of halting interest rate increases against weak Chinese economic data that could limit demand.

By 0016 GMT, Brent crude futures rose three cents to $79.67 a barrel, while US West Texas Intermediate crude rose nine cents to $75.74 a barrel. Prices recorded a slight increase when settling on Thursday

According to “Reuters”, throughout the week, Brent crude is heading for a decrease of 0.2%, while US crude is expected to rise by 0.4%.

What supported prices was the decline in US crude stocks last week, supported by a jump in crude exports, the Energy Information Administration said on Wednesday.

In addition, recent data, such as the lower-than-expected inflation rate and moderate job growth, have convinced many investors and analysts that the Federal Reserve’s expected interest rate hike this month will be the last in the current tightening cycle.

Higher interest rates could slow economic growth and lower demand for oil

However, China’s weak economic data kept oil prices in check. The world’s second largest oil consumer this week recorded disappointing GDP growth for the second quarter, raising the possibility that the economy will miss the government’s annual growth target of 5%.