Global oil markets declined significantly, with oil futures closing down 1.5%.
The price of standard Brent crude fell by $1.24, reaching $81.13 per barrel, while the price of US West Texas Intermediate crude fell by $1.12, reaching $77.16 per barrel.

Over the course of the week, Brent crude fell by more than 1%, and US West Texas Intermediate crude fell by more than 3%.

This decline is due to several factors, most notably weak demand for crude oil from China, the world’s largest oil importer, and growing hopes for reaching a ceasefire agreement in the Gaza Strip.

Although positive US economic data supported prices at the beginning of trading, concerns about Chinese demand dominated the scene, especially amid a decline in China’s imports of fuel oil by 11% during the first half of this year.

The approaching end of the summer vacation season in the United States, which usually leads to a decline in demand for fuel, has contributed to pressure on prices.

The Chinese economy faces the risk of entering a deflationary cycle, which could lead to a further decline in oil prices, George Khoury, head of research and education at CFI, said.

Likewise, Bob Yawger, director of energy futures at Mizuho in New York, warned that Chinese oil demand is heading for a deterioration, which could lead to further declines in prices.