On Friday, crude oil prices slipped, continuing their weekly decline due to mixed economic signals regarding investor sentiment and a higher dollar.
West Texas Intermediate crude oil contracts for September shipments fell by -0.68% to $80.75 per barrel. Brent futures dropped by -0.42% to $84.75 a barrel on July 19’s Asian afternoon session.
Earlier this week, the US dollar index went up for the second consecutive period after better-than-expected data on its labor market and manufacturing. A higher greenback weakens demand for dollar-denominated oil from investors with other currencies.
According to official data, China’s economic growth was slower than anticipated, at 4.70% in the second quarter. This raised concerns about the country’s fuel demand.
On the other hand, the US government’s more extensive weekly report on stockpile declines was a bullish factor for the commodity’s price.
Based on analysts, broader storage trends look more bearish than their forecast this month. They added that crude oil stock had drawn more sluggishly this year, and global fuel stocks jumped last week.
On Thursday, the Organization of the Petroleum Exporting Countries and its allies are unlikely to advise a revision on their output policy. Also, this included a plan to unwind a layer of oil supply cuts from October.
ECB Wavers Eased Oil Price Highs
Oil prices eased back after the European Central Bank maintained its rates. Also, it continued to waver over the timing of the following rate cut.
According to the central bank chief, markets have significantly priced in a 25.00% rate cut probability for September.
Benchmarks slid off from early highs due to worries over the state of the global economy, leaving crude futures little changed.
Brokers said the EU policymakers are not optimistic about high prices. However, they remain on track for upcoming rate cuts, followed by high borrowing costs that can further damage the bloc’s economy.
