August 8, 2025, 10:06:55 (IST)
Oil prices rise on strong US demand amid global economic uncertainty
Oil prices have risen, buoyed by indicators of strong demand from a robust US economy, as per a report in Asharq Al-Awsat. This upward pressure is counterbalanced by significant macroeconomic uncertainty, stemming from global inflation trends, central bank interest rate policies, and the inconsistent economic performance of major importers such as China. For West Asian producers, including Saudi Arabia and the UAE, the higher prices boost state revenues but also underscore the need for production discipline amid potential long-term demand threats. The market is further influenced by a substantial geopolitical risk premium arising from regional instability, including Houthi attacks on shipping in the Red Sea and the ongoing Israel-Hamas conflict, which threaten key supply routes.
