Oil prices fell on Thursday, threatening to end the longest streak of daily gains since January 2019.
Prices fell partly due to weak Chinese trade data that raised new concerns about global oil demand. Chinese Exports decreased 8.8% in August compared to the previous year, while imports fell 7.3%. But oil imports increased by 31%.
West Texas Intermediate
US crude fell 42 cents, or 0.5%, to $87.12 a barrel. Wednesday saw nine straight days of gains for WTI, helping it rise 8.2% for the year.
Brent crudeThe international index fell 0.5% to $90.13 after a seven-day winning streak. It is up 5% since the beginning of the year.
The recent rise in oil prices has been driven by supply cuts by major producers, resulting in oil demand outstripping supply. Russia and Saudi Arabia pledged this week to limit production until at least the end of the year. Some analysts expect these supply cuts to support the market for several months.
“Our numbers point to tightness through the rest of the year, as Riyadh and Moscow remain committed to production cuts,” wrote Michael Tran, an analyst at RBC Capital Markets.
Analysts at UBS predicted yesterday that oil prices could rise another 6% by the end of the year.
While oil at $100 remains exaggerated, some believe it is more possible.
“The idea of $100 a barrel has evolved from being completely inconceivable just a few short months ago, to within striking distance (or inflated) of today,” Tran wrote.
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