Oil prices dive amid demand concerns from US, China
Date
8/22/2024 7:52:23 AM
(MENAFN) On Thursday, oil prices experienced a slight decline as ongoing concerns about demand from the world’s two largest oil consumers, the US and China, weighed on market sentiment. The international benchmark brent crude slipped by 0.13 percent, trading at USD75.95 per barrel as of 10:40 a.m. local time (0740 GMT), down from the previous session's close of USD76.05. Similarly, the US benchmark West Texas Intermediate (WTI) decreased by 0.29 percent, settling at USD71.72 per barrel, a drop from the prior session's close of USD71.93.
Market caution was heightened ahead of the Jackson Hole Economic Policy Symposium in the US, with uncertainty surrounding the Federal Reserve's next policy moves contributing to a mixed global market outlook. Investors are particularly focused on Fed Chair Jerome Powell’s remarks scheduled for Friday, which are expected to provide insights into the central bank's future policy direction and potentially increase volatility across various asset classes.
Minutes from the Fed’s most recent meeting, released on Wednesday, indicated that many officials are leaning towards easing monetary policy in September, contingent on forthcoming economic data meeting expectations. Additionally, the US Department of Labor revised non-agricultural employment figures for the year ending March 2024, showing that employment increased by 818,000 fewer jobs than previously reported.
Economic concerns were further compounded by China’s economic slowdown. Recent data showed a significant decline in new home prices, marking the sharpest drop in nine years, alongside weakened industrial production and rising unemployment, all contributing to fears of diminished oil demand. Meanwhile, US commercial crude oil inventories fell by approximately 4.6 million barrels to 426 million barrels for the week ending August 16, as reported by the Energy Information Administration (EIA). Gasoline inventories also declined, dropping by about 1.6 million barrels to 220.6 million barrels during the same period.
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