Oil prices declined further in Asian trading on Thursday, continuing a recent downward trend as weak U.S. labor data heightened fears of an economic slowdown, overshadowing optimism about potential interest rate cuts.
Ongoing uncertainty over a possible Israel-Hamas ceasefire provided little support for crude prices, with negotiations showing no clear progress toward a resolution.
Even a surprising drawdown in U.S. oil inventories, which typically would boost prices, failed to prevent the market’s decline.
By 21:04 ET (01:04 GMT), Brent crude futures had slipped 0.1% to $75.95 a barrel, while West Texas Intermediate (WTI) crude futures were down 0.2% at $71.16 a barrel.
Weak U.S. Labor Data Amplifies Oil Losses
The latest drop in oil prices followed a U.S. Labor Department report that significantly revised down the country’s job growth figures. The Bureau of Labor Statistics cut March 2024’s employment gains by 818,000 jobs as part of an annual payroll review.
This downward revision stoked fresh concerns about a potential U.S. recession, particularly after disappointing labor data for July prompted a broader risk-off sentiment in global financial markets.
While the weaker labor market data solidified expectations for a September interest rate cut, it also raised fears that the Federal Reserve might be acting too late, potentially leading the U.S. economy toward a hard landing. Such a scenario would likely dampen fuel demand in the world’s largest oil consumer, especially as U.S. oil production has recently hit a record high of over 13 million barrels per day.
U.S. Inventories Decline More Than Expected
In the near term, U.S. demand for oil remains strong. Official data released on Wednesday showed that U.S. oil inventories shrank by 4.6 million barrels in the week ending August 16, significantly exceeding expectations of a 2 million barrel draw.
Large draws in both distillate and gasoline stockpiles suggested that fuel demand was robust even as the summer travel season came to a close.
However, traders remain cautious about the demand outlook for the remainder of the year, particularly amid growing recession fears. The possibility of increased oil production outside the U.S. has also raised concerns about a potential supply glut.
Adding to these concerns are weak economic indicators from China, which suggest slowing demand in the world’s largest oil importer.
.
#everyday_information #forex #option #Binary_Option #trading #trader #goldstocks #forextrader #fx_trade_time #fxttime #USDollar #euro #JPY #GBP #chfcurrency
#dubai #UAENews #ksasaudiarabia #Syrian #iraq #kuwait #jordan #morocco #Libya #tunisia #algerian #Egypt #qatar #lebanon
#كل_يوم_معلومه #فوركس #خيارات_ثنائيه #تداول_عملات #بورصه #ذهب #فوركس_تريد_تايم #اف_اكس_تريد_تايم #دولار #يورو
#دبي #امارات #السعوديه #سوريا #العراق #الكويت #الاردن #المغرب #ليبيا #تونس #الجزائر #مصر #قطر #لبنان
.
www.fxttime.com/trade