Published on : Jul 09, 2015
Crude oil prices saw some upward swing on Thursday as demand for gasoline and supportive economic data from Germany brought some relief to the heavy losses being incurred in oil trading. Oil prices have struggled to hold solid grounds since the start of this year, finding it difficult to regulate the high production from major oil producers and lower demands from across the globe.
For August delivery, prices for the U.S. crude futures went up 55 cents and reached at US$52.20 per barrel at 0950 GMT but the prices were still lower by nearly 8 per cent when compared to their state at the end of the last week. Brent crude prices went up by a meager 40 cents and reached US$57.45 per barrel. This rise still could not raise the overall profits much, which were still 4 per cent less than that on the last Friday.
Olivier Jakob, the Managing Director of PetroMatrix, said that Brent crude has found some ground. As long as gasoline holds a strong position, it will be hard for crude oil to earn another sell-off without any progress from Iran.
One major factor that is underpinning crude oil prices is the strong demand for motor fuel that is encouraging oil refineries in processing as much crude oil as possible.
Some help also came from the Chinese government that helped in improving the situation of its stock market pacifying new concerns over the economical concerns being faced by the world’s largest consumer of energy.
In one of the most drastic steps taken to stop a complete sell-off that had the global financial markets brought under huge pressure, China’s security regulators prohibited the selling of shares by shareholders having huge stakes in listed companies.