Oil futures fell about 1.5 percent on Friday, ending the week lower on weak demand from China and rising hopes for a ceasefire in Gaza that could ease tensions in the Middle East and attendant supply concerns.
Price movements
During Friday's trading, the price of Brent crude fell $1.24, or 1.5 percent, to settle at $81.13 a barrel.
US West Texas Intermediate crude fell $1.12, or 1.4 percent, to $77.16 a barrel.
Brent fell more than 1 percent over the week, while US West Texas Intermediate fell more than 3 percent.
“Yesterday’s better-than-expected US GDP growth data initially supported the crude oil market, but these gains were offset by concerns about weaker Chinese oil demand,” said George Khoury, head of research and education at CFI.
Data a few days ago showed that China's total fuel oil imports fell by 11 percent in the first half of this year, raising concerns about the outlook for demand from China.
Chinese demand is trending down here, and crude oil prices are trending down, said Bob Yawger, director of energy futures at Mizuho in New York.
The Chinese economy is at risk of entering a deflationary cycle, which will lead to lower prices due to a decline in demand, Yuger added.
US oil demand is also expected to decline as US refineries prepare to cut production as the summer vacation season approaches its end in early September.
Prices were also affected by hopes of reaching a ceasefire agreement in the Gaza Strip.
