Appetite for risk in financial markets has increased due to growing expectations of the approaching end of the monetary tightening cycle
Dubai – Al Arabiya.net
Posted on: July 29, 2023: 10:19 AM GST Last updated: July 29, 2023: 11:03 AM GST
Oil prices rose at the close of trading on Friday, recording gains for the fifth week in a row, amid optimism among investors that prices will continue to rise thanks to the recovery in demand and supply cuts.
The appetite for risk in financial markets in general increased due to growing expectations that large central banks such as the US Federal Reserve and the European Central Bank are close to ending the monetary tightening cycle, which boosted expectations for global growth and energy demand.
The two benchmarks rose about 5% this week, supported by the supply cuts announced by the “OPEC +” alliance earlier this month. Both benchmarks are on track to gain 13% for the month.
Brent crude rose 75 cents to $84.99 a barrel on Friday, while US West Texas Intermediate crude rose 49 cents to $80.58 a barrel.
Expectations for demand growth increased yesterday, Thursday, after US gross domestic product grew in the second quarter at a rate of 2.4%, which exceeded expectations and supports the view of Jerome Powell, Chairman of the Federal Reserve, that the economy is capable of achieving the so-called “soft landing.”
2023-07-29 06:19:00
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