Oil prices closed at a relatively high level on Friday, marking four consecutive weeks of growth, as the decline in inventories offset concerns about demand.
Brent Crude and West Texas Intermediate (WTI) both rose by approximately 1.8% and 1.88%, respectively, closing at $81.07 per barrel and $77.07 per barrel.
Market analyst Edward Moir suggested that Brent Crude might break through $80, which could have an impact on next week's report from the U.S. Energy Information Administration and the Federal Open Market Committee meeting.
Crude oil futures have seen three weeks of continuous growth due to additional production cuts by OPEC+ member countries and a slowdown in inflation in major economies.
Suhail Al Mazroui, the Minister of Energy and Infrastructure of the United Arab Emirates, expressed that the current actions taken by OPEC+ are sufficient but also mentioned that other measures could still be discussed.
Despite Brent Crude surpassing $80 for the first time, weak Chinese economic data this week has put pressure on futures.
According to data from the National Bureau of Statistics, China's GDP grew by 6.3% year-on-year in the second quarter, lower than economists' expectations of 7.1% and 7.3%.
Compared to the previous quarter, GDP growth in the second quarter was only 0.8%, mainly due to a slowdown in retail sales and manufacturing output, as well as a decline in the real estate industry's growth rate.
Meanwhile, according to data from the U.S. Energy Information Administration, U.S. crude oil inventories fell by about 700,000 barrels last week, although analysts expected a decrease of 2.4 million barrels.
Goldman Sachs stated that the likelihood of further supply cuts after the OPEC+ reductions is low. Coupled with Chinese crude oil inventories approaching record highs, it is expected that oil prices will not reach $100 per barrel this year, but the market is expected to shift towards a deficit in the second half, pushing prices up to $86 per barrel.
Furthermore, Saudi Arabia and Russia have also pledged to extend production reduction policies, and the balance between supply tightness and oversupply will be crucial.
Mitsubishi UFJ Securities pointed out that China's lower-than-expected growth has led to concerns about oversupply in the market. The bank also noted that China has increased its daily crude oil inventories by approximately 2 million barrels in a month.
The balance between supply shortages and oversupplies will be crucial in the coming months. It is expected that Brent Crude prices will quietly rise within the range of $80 to $85 per barrel, but attention should be paid to changes in market speculative sentiment.