Oil prices on the rise: Stocks decline, demand strengthens

In international markets, Brent crude oil rose by 0.35 percent to the 68.76 dollar level. From a technical perspective, if Brent oil surpasses the 68.91 dollar resistance level, it could open up a new upward channel targeting 69.66 dollars.

US STOCKS EXCEED EXPECTATIONS

One of the primary drivers of the rise was the weekly crude oil inventory data released by the US Energy Information Administration. Instead of the expected 552,000-barrel decline, it was reported that stocks decreased by 3.9 million barrels. This development signals a tightening on the supply side while pointing to an increase in refinery capacity.

CHINESE DATA EASES DEMAND CONCERNS

China's crude oil production in June increasing by 8.5 percent on an annual basis was another factor supporting the global demand outlook. At the same time, US President Donald Trump's decision to lift the AI chip export ban on China and other trade steps were also received positively in the markets.

RISKS PERSIST: ANALYSTS WARN

However, the unexpected increases seen in gasoline and diesel stocks have raised the possibility of a slowdown in short-term demand. Experts also believe that a potential correction in oil prices could accelerate if the level falls below 67.33 dollars. In that scenario, the 63.99 dollar levels could be retested.

News Source: 12punto