Oil prices edged lower on Thursday as ongoing demand concerns in the US and China, the world’s largest oil consumers, weighed on market sentiment.
International benchmark Brent crude fell 0.13% to $75.95 per barrel at 10.40 a.m. local time (0740 GMT), down from the previous session’s close of $76.05. US benchmark West Texas Intermediate (WTI) decreased by 0.29% to $71.72 per barrel, after closing at $71.93 in the prior session.
Global markets remained mixed ahead of the Jackson Hole Economic Policy Symposium in the US, with uncertainty surrounding the Federal Reserve’s next steps fueling caution.
Investors are closely monitoring Fed Chair Jerome Powell’s remarks on Friday for potential signals on the central bank’s policy trajectory, which could drive volatility across asset classes.
Minutes from the Fed’s latest meeting, released Wednesday, revealed that most officials favored easing monetary policy in September, contingent on forthcoming data aligning with expectations.
While, the US Department of Labor revised non-agricultural employment data for the 12-month period until March 2024. According to the revision, employment in the US increased by 818,000 less than previously announced in the said period.
Economic concerns were further amplified by China’s slowing growth. Last week’s data revealed that new home prices in the country declined at the fastest pace in nine years, while industrial production faltered and unemployment ticked higher, raising fears of weakening oil demand.
Price decline was slightly offset by US crude inventory data showing a drop in stocks.
US commercial crude oil inventories fell by about 4.6 million barrels to 426 million barrels during the week ending Aug. 16, according to data released by the Energy Information Administration (EIA) late Wednesday.
Over the same period, gasoline inventories fell by approximately 1.6 million barrels to 220.6 million barrels.
