Oil Prices Settle Down After Data Shows Weaker US Consumer Sentiment
Date
7/15/2024 4:00:26 AM
(MENAFN- The Peninsula)
The Peninsula
Doha, Qatar: Oil futures prices settled slightly lower on Friday as investors weighed weaker US consumer sentiment against mounting hopes for a federal Reserve rate cut in September.
Brent crude futures settled 37 cents lower to $85.03 a barrel. US West Texas Intermediate crude futures fell 41 cents, or 0.5 percent, to close at $82.21 a barrel. For the week, brent futures fell more than 1.7% after four weeks of gains. WTI futures posted 1.1 percent weekly decline, noted Al-Attiyah Foundation in its Weekly energy market Review.
The US labor Department said the producer price index (PPI) rose 0.2 percent in June, slightly more than expected, as the cost of services climbed. Still, investors expect the Fed could start cutting rates in September. Lower rates are expected to boost economic growth, which could boost fuel consumption.
Oil prices have drawn some support from US gasoline demand, which government data showed on Wednesday was at 9.4 bpd in the week ended July 5, the highest since 2019 for the week that includes the Independence Day holiday. Jet fuel demand on a four-week average basis was at its strongest since January 2020. Signs of weaker demand from China could counter the outlook from the United States and weigh on prices.
Asian spot liquefied natural gas (LNG) prices fell slightly this week, tracking European gas prices, amid muted Chinese demand but they remained above $12.00 for the eighth week running. The average LNG price for August delivery into north-east Asia was at $12.10 per million British thermal units (mmBtu), industry sources estimated, down from $12.20 per mmBtu the previous week.
Increased hydro(power) availability in China is pressuring demand, while economic indicators like inflation and producer prices are also not supportive of enhanced growth for the second half of the year, analysts said.
MENAFN15072024000063011010ID1108438738
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.