Share

Oil prices inch higher after slump

London - Oil prices rose slightly on Friday following sharp falls the previous day, stoked by a slew of downbeat global economic data and easing concerns about the Ukraine crisis, analysts said.

US benchmark West Texas Intermediate (WTI) for delivery in September edged up five cents to $95.63 a barrel.
Brent North Sea crude for October rose 35c to $102.38 a barrel.

WTI had tumbled by two dollars on Thursday while the Brent contract for September delivery fell $2.27 ahead of its expiry to its lowest closing level since June 2013.

"The steeper-than-expected decline in oil prices is partly in reaction to soft economic data out of major global economies this week," Desmond Chua, market analyst at CMC Markets in Singapore, told AFP.

The sharp falls in oil prices on Thursday coincided with the release of data showing growth in the 18-country euro zone stalled in the second quarter.

Germany, the bloc's largest economy, shrank by 0.2%, and France, the second-largest, had zero growth for the second consecutive quarter.

Prices also came under pressure after the release of a string of disappointing Chinese data on Wednesday.
Chua said risk premiums associated with the armed insurgency in Ukraine, a key conduit for Russian energy exports to Europe, were continuing to unwind.

"With Ukraine, Russian President Vladimir Putin's conciliatory comments towards the West have been seen as an effort to diffuse tensions and downplay the likelihood of a full-blown conflict in Ukraine," Chua said.

In a speech on Thursday, Putin said Russia would not "fence itself off from the outside world," despite a plunge in East-West relations over the pro-Kremlin insurgency.

He said Moscow would not break ties with the United States and Europe but "should also not let them treat us with disdain".

Russia is the world's second-largest oil producer and there are concerns that tough Western sanctions against Moscow for its seizure of Crimea in March and support for separatists in east Ukraine could affect its gas exports to Europe.
 

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.88
+0.3%
Rand - Pound
23.82
+0.4%
Rand - Euro
20.38
+0.3%
Rand - Aus dollar
12.30
+0.3%
Rand - Yen
0.12
+0.3%
Platinum
908.05
0.0%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders