On Friday, Brent crude traded at $73.88 per barrel, down from $74.23 the previous day, while West Texas Intermediate (WTI) fell to $69.83 from $70.44.
Oil prices slip despite inventory decline
Crude oil prices had risen on Thursday for the first time in four sessions, buoyed by a larger-than-expected drop in U.S. oil inventories and ongoing tensions in the Middle East, according to ING analysts Patterson and Manthey. The U.S. Energy Information Administration reported a decrease of 2.2 million barrels in official crude oil inventories for the week ending October 11, bringing the total to 420.6 million barrels.
Volatility affects oil market
Hani Abuagla from XTB noted that the oil market was experiencing notable volatility. "While crude oil futures are fluctuating, they may face additional pressure due to mixed economic signals from China and revised demand forecasts," he explained.
China reported its slowest economic growth in a year and a half on Friday, with the National Bureau of Statistics announcing a 4.6% year-on-year expansion in the third quarter, down from 4.7% in the previous quarter. However, this was slightly better than the 4.5% predicted by analysts surveyed by AFP.
"In the near term, crude prices may remain volatile as geopolitical conditions continue to evolve," Abuagla added.
