Oil price movements during daylight hours were characterized by a tendency to stabilize and then decline somewhat. Brent oil now records a price of $83.84 a barrel, while US crude records a price of $79.98. We note that oil moved at the same levels at the end of the week and has not made different movements yet, but it had succeeded in surpassing the current level during the previous week.
In the recent period, the concern about oil was about weak demand from China, as China is facing some economic problems that may threaten its oil consumption, bearing in mind that China is one of the largest consuming countries after the United States, and that China represents the second largest economy in the world after The US economy too.
This concern is increased by the decline in Saudi oil exports to China in July, as confirmed by Chinese customs, while Russian oil continued to head towards China, and it is expected that Saudi exports to China will continue to decline, during the third quarter of the year, after Chinese economic data indicated to lower economic activity.
At the same time, the dollar, which is the first currency by which we measure the price of oil and other commodities, rose, in light of Federal Reserve Governor Jerome Powell’s indication that the US economy will need more interest rate hikes to contain inflation, and this was a statement at the Jackson Hole Economic Symposium in At the end of the week, and if the US dollar index continues to rise, this will contribute to pressure on the price of commodities, whether these commodities are oil, gold, and others.
Yesterday, an oil spill occurred from a pipeline in Iran, and that was between the islands of Kharg and Janawa, and these areas belong to Iran that the state relies on for exporting its oil production, as there is an island outside a shipping station from which a large amount of Iran’s oil exports moves.
Immediately after this happened, the Iranian authorities sent teams and divers to work to limit the continued leakage of oil under the water, and the authorities also directed more than one ship to a port outside to control the matter.
