Oil prices rose slightly and are trading close to yesterday’s prices, as Brent crude now records a price of $84.38 a barrel, while American crude records a price of $80.53. Oil prices advanced during the current period compared to the previous one, despite the presence of many factors that may pressure them in the future. The most important of which is the high US interest, as the Federal Reserve approved the continuation of this policy, and the weakness of Chinese demand and the economic obstacles in the second largest economy in the world are pressuring the expectations of oil prices.
However, the Chinese Ministry of Finance issued a decision exempting foreign investors inside China from taxes, and this exemption extends until the end of the year 2027. These steps come from the Chinese government to help advance the economy and stimulate foreign investment inside the country, and with the increase in investments, projects continue to be established and the demand for oil.
At the same time, concerns about oil supplies coming from the United States are increasing. The American Gulf is now at risk of a possible storm. The tropical storm is heading towards the coast of Florida, and it is likely to affect electricity and oil production in the American Gulf.
At the end of this week, the oil market observers are waiting for a set of US data that the Federal Reserve takes into account when setting the interest rate, which are the US jobs reports for the month of August, which are represented by the unemployment rate, average hourly wages and the rate of change in non-agricultural jobs.
By evaluating the work sector and jobs, it is possible to determine whether the Fed’s policy is bearing fruit or not, and US economic indicators and interest rates are reflected in the attitudes of investors in the oil market.
