Oil prices reached their highest level in a week on Thursday, May 9, thanks to data from China and the U.S. signaling potential increases in demand from the two largest oil-consuming countries.

At the close of trading on May 9, Brent crude rose by 30 cents (0.4%) to $83.88 per barrel. West Texas Intermediate (WTI) crude gained 27 cents (0.3%) to $79.26 per barrel.

This marks the highest closing price for both crude oil contracts since April 30, 2024.

However, the rise in oil prices was tempered by U.S. energy data indicating that gasoline and diesel demand last week was the lowest since the COVID-19 pandemic in 2020.

Phil Flynn, a senior analyst at Price Futures Group, commented on the slight fluctuations in crude oil prices: “Oil is trading within a very narrow range. There isn’t much news about oil out there. Geopolitical news from the Middle East is in the background and still unclear.”

In China, crude oil imports in April increased year-on-year, and both exports and imports grew last month, reflecting higher domestic and international demand as Beijing moves to bolster its unstable economy.

In the U.S., initial jobless claims also rose last week to their highest level in over eight months, adding to evidence that the labor market is cooling down.

Analysts forecast that the weakening labor market raises hopes for two Federal Reserve rate cuts this year.

Lower interest rates would reduce borrowing costs and could boost economic growth and oil demand.

The Bank of England (BoE) has also taken further steps toward rate cuts, with a second official supporting the reduction and Governor Andrew Bailey expressing optimism that things are moving in the right direction.

Source: Vietstock