Oil Prices Hover Near Six-Week Lows Amid Summer Consumption Slump
Oil prices hovered near their lowest level in six weeks on Wednesday as the northern hemisphere entered summer without the expected surge in fuel consumption.
The Brent crude futures for September rose 66 cents, or 0.8 percent, to $81.67 a barrel by 11:08 a.m. Saudi time, while US West Texas Intermediate crude for September increased 65 cents, or 0.8 percent, to $77.61 per barrel.
Tamas Varga of oil broker PVM attributed the wider sell-off to 'diminishing hopes of demand resurrection' due to an admission from refiners that the summer leap in consumption is not taking place.
Prices had fallen on Tuesday to a six-week low, with Brent closing at its lowest level since June 9, due to concerns over ceasefire talks between Israel and Hamas, as well as the economic slowdown in China.