Oil prices surge as US demand strengthens

Oil prices in Asia have shown stability on Friday, with Brent crude futures and US West Texas Intermediate crude futures maintaining their upward trend. Brent crude futures, which have risen by 7% in the last four weeks, are currently priced at $87.41 per barrel. Similarly, US West Texas Intermediate crude futures, with a 9% increase over the same period, are now at $83.97.

The US market was closed on Thursday for the Fourth of July holiday, resulting in lighter trading activities. The optimism in oil prices is fueled by expectations of strong summer demand in the US, the world's largest oil consumer. Positive mobility indicators and escalating tensions in the Middle East have also contributed to the bullish sentiment in the market this week.

The US Energy Information Administration's report of a significant 12.2 million barrels draw in inventories last week, exceeding analysts' predictions, has further supported the upward trajectory of oil prices. Additionally, recent US economic data indicating a rise in initial jobless claims and unemployment figures may lead to potential interest rate cuts by the US Federal Reserve, which could further boost oil markets.

On the supply side, Russian oil giants Rosneft and Lukoil are planning to reduce oil exports from the Black Sea port of Novorossiisk in July. Meanwhile, Saudi Aramco has adjusted the price for its Arab Light crude sold to Asia in August, reflecting the challenges faced by OPEC producers amidst increasing non-OPEC supply.

Market analysts are closely monitoring the situation in Gaza, as well as the upcoming elections in France and the United Kingdom, for potential impacts on oil prices.

Oil prices in Asia have shown resilience and are on track for a fourth consecutive week of gains. Factors such as strong US demand, geopolitical tensions, inventory drawdowns, and supply adjustments by key oil producers are influencing the market dynamics. As global events continue to unfold, the oil market remains a key area of interest for investors and analysts alike.