Oil Costs Dip Due to Demand Fears, But Are They Still Rising This Week? Find Out!

**TOKYO, Sept 8** - It's a slide again for oil prices this Friday! The global worries over dwindling demand seem to have taken the steam out of their rise. But hey, things aren't all gloomy! They're still gearing up for their second weekly bump in a row, thanks to a hopeful horizon of dwindling supplies.

Brent crude futures were down a mere 33 cents, standing at $89.59 a barrel by early morning, with U.S. West Texas Intermediate (WTI) dancing to the same tune, dropping to $86.54. But let's not forget – earlier this week they were soaring, reaching a 10-month apex. Why? Thanks to concerns about possible shortages in the chilly winter months. It seems Saudi Arabia and Russia's decisions to maintain their production cuts through the year end spooked quite a few.

Doing the weekly math? Both Brent and WTI are marching forward with about a 1% uptick.

Tatsufumi Okoshi, a top-tier economist at Nomura Securities, chimes in. "The recent price rally? That was investors cashing in on fears of a tight supply, courtesy of extended cuts by our friends in Saudi Arabia and Russia," he said. For another price hike, Okoshi believes we'd need to see some robust demand worldwide, with China taking the lead. However, he added a dash of caution, pointing out that China's recent economic stimuli haven't quite hit the mark yet.

Speaking of China, the big news from the East is a bit of a mixed bag. Their trade saw a dip in August, hinting at a dual challenge of decreasing foreign demand and a bit of a hiccup in domestic consumer spending. But, on the flip side, China's crude imports leapt by a whopping 30.9% last month. Seems like they're playing it smart, with refiners upping their game to pocket more from fuel exports.

And how's the U.S. doing, you ask? A surprise dip in U.S. crude oil stocks is giving prices a subtle nudge. For four weeks in a row now, there's been a decline. In fact, just last month, stocks plummeted by over 6%. It appears U.S. oil refiners are going full throttle to match the world's energy appetite, as per the recent data from the Energy Information Administration. And the cherry on top? Crude inventories saw a dip of 6.3 million barrels, dwarfing the predicted 2.1 million-barrel drop. Talk about unexpected turns!

Source : Reuters (Reporting by Yuka Obayashi)