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WTI prices had posted their longest winning streak since 2019.
dream time
Oil prices fell on Thursday, threatening to end the longest streak of daily gains since January 2019.
Prices fell partly because weak Chinese trade data raised fresh concerns about global oil demand. Chinese exports fell 8.8% in August from a year earlier, while imports fell 7.3%. Oil imports, however, increased by 31%.
West Texas Intermediate
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The benchmark US index was down 42 cents, or 0.5%, at $87.12 a barrel. Wednesday marked nine straight days of gains for WTI, helping lift it 8.2% for the year.
Brent Crude, the international standard, was trading 0.5% lower at $90.13 after a seven-day winning streak. It has increased 5% since the beginning of the year.
The recent rally in oil has been fueled by supply cuts by major producers, which are causing demand for oil to exceed supply. Russia and Saudi Arabia pledged this week to limit production at least until the end of the year. Some analysts expect those supply cuts to propel the market for months.
“Our numbers suggest a shortage for the rest of the year as Riyadh and Moscow remain committed to production cuts,” wrote Michael Tran, an analyst at RBC Capital Markets.
UBS analysts predicted yesterday that oil prices could rise another 6% by the end of the year.
While oil price at $100 remains difficult, some see it as more possible.
“The notion of $100 a barrel has evolved from something completely unimaginable a few months ago to being an astonishing (or exaggerated) distance today,” Tran wrote.
Write to Brian Swint at brian.swint@barrons.com and Avi Salzman in avi.salzman@barrons.com
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