Oil prices fell about 2% in a week; The deepening real estate crisis in China has raised concerns about a slowdown in the country's economic recovery and reduced investors' risk appetite.
This came despite the rise in oil prices by about 1% in the last sessions of the week amid indications of slowing production in the United States, but the two benchmarks ended their longest series of weekly gains in 2023 due to growing concerns about the growth of global demand.
On Friday, Brent crude futures rose 68 cents, or 0.8%, to $84.80 a barrel upon settlement, and US West Texas Intermediate crude futures rose 86 cents, or 1.1%, to $81.25 a barrel upon settlement.
The two benchmarks rose on Friday after data showed that the number of oil and natural gas rigs in the United States fell for the sixth consecutive week. The decline in US production may exacerbate the expected supply shortages during the remainder of the year
The concerns are driven by supply cuts by the Organization of the Petroleum Exporting Countries and its allies (OPEC+), which has helped push oil prices up for seven straight weeks since June. Brent crude rose by about 18%, while US West Texas Intermediate crude increased by 20% during the seven weeks ending on August 11.
However, oil prices fell this week by about 2% compared to last week, as the worsening real estate crisis in China increased concerns about the slowdown in the economic recovery in the country and reduced the risk appetite of investors.
