Oil prices experienced a slight drop on Thursday, putting an end to the longest streak of daily gains since January 2019. The decrease in prices can be attributed to concerns over demand, which surfaced after Russia and Saudi Arabia pledged to limit production through the end of the year to control supply. Furthermore, data from China, the world’s second-largest economy, has raised concerns about growth.
The West Texas Intermediate (WTI), considered the U.S. benchmark, fell by 0.5% to $87.11. Prior to this dip, WTI had experienced nine consecutive days of gains, marking its longest winning streak in years. The closing price also reached its highest point since November. Since the beginning of the year, WTI prices have risen by 8.2%.
Meanwhile, Brent crude, the international standard, saw a 0.4% decrease in trading, reaching $90.25 early on Thursday. This decline follows the longest streak of daily gains for Brent crude since May 2022. Since the start of the year, it has experienced a 5% increase.
According to analysts at UBS, there is a prediction that oil prices could rise by an additional 6% by the end of the year.
China’s latest figures reveal a drop of 8.8% in exports for August compared to the previous year, along with a 7.3% decrease in imports. However, there was a significant surge of 31% in oil imports.
Overall, while oil prices experienced a slight setback after a significant period of gains, analysts remain optimistic about potential future increases in prices.
