By Anadolu Agency
October 18, 2024 3:14 pmISTANBUL
Oil prices rose on Friday as investors anticipated a surge in demand from the world’s top oil consumer, fueled by Thursday’s strong US retail sales figures.
The international oil benchmark of Brent crude climbed 0.03% to $74.19 per barrel at 11.23 am local time (0823GMT), down from the previous session’s close of $74.17.
US benchmark West Texas Intermediate also rose by 0.8% to $69.60 per barrel, compared to $70.18 at the prior session’s close.
US retail sales climbed 0.4% in September from the previous month, reaching $714.4 billion. Analysts highlighted that the rise in retail sales strengthened the belief that the economy maintained its growth momentum during the third quarter.
Additionally, initial jobless claims in the US dropped to 241,000 in the week ending Oct. 12, coming in below market expectations and signaling a cooling in the labor market since its post-pandemic peak.
Meanwhile, the US Federal Reserve is expected to reduce its policy rate by 25 basis points next month, with a total reduction of 50 basis points expected across the two remaining meetings before the end of the year.
Moreover, the Chinese government’s recent announcement of incremental measures to revitalize its struggling real estate sector, which has been on a downward trajectory for the past three years, also supported oil prices.
On Thursday, Housing and Urban-Rural Development Minister Ni Hong announced plans to expand a “white list” of housing projects eligible for financing and to boost bank lending for these developments to $562 billion by year-end.
Measures by China, the world’s largest oil importer, to boost its real estate sector could alleviate concerns about oil demand and support prices.
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