Aerial view of a tugboat helping a crude oil tanker moor at an oil terminal off Waidiao Island in Zhoushan, Zhejiang province, China, July 18, 2022. cnsphoto via REUTERS /file photo Acquisition of license rights
NEW DELHI, Aug 24 (Reuters) – Major economies disappointing data and investors awaiting Federal Reserve Chairman Jerome Powell’s speech on Friday for clues on interest rates Crude oil prices softened in early trading on Thursday.
By 0359 GMT (3:59 a.m. Japan time), Brent crude fell 26 cents (0.3%) to $82.95 a barrel and US West Texas Intermediate crude fell 30 cents (0.4%). %) fell to $78.59 a barrel.
Analysts said manufacturing data from a slew of Purchasing Managers Index (PMI) surveys released Wednesday showed a grim picture of economic health around the world, raising concerns about demand. .
Japan reported a third straight month of contraction in factory activity in August. Eurozone business activity also fell more than expected, especially in Germany. The UK economy is expected to contract this quarter and is at risk of slipping into a recession.
U.S. business activity neared a plateau in August, with growth slowing to its lowest level since February.
Meanwhile, Federal Reserve officials and policymakers at the European Central Bank, the Bank of England and the Bank of Japan are headed to Jackson Hole, where the debate on raising long-term interest rates may prevail despite lower inflationary pressures. There is
Suganda Sakdeva, executive director and chief strategist at Acme Investment Advisors, said the downward pressure on oil prices was largely due to a weak PMI, as well as concerns over a potential decline in oil demand and an increase in supply. said it was due to
On the supply side, Iran’s oil minister was quoted as saying state media said Iran’s crude oil production could reach 3.4 million barrels per day (bpd) by the end of September despite continued US sanctions. Ta.
U.S. officials are also easing sanctions on Venezuela’s oil sector, allowing more companies and countries to enter the trade if the country moves toward a free and fair presidential election, according to five people familiar with the plan. It is said that it is drafting a plan to allow crude oil imports. .
“Given the significant resistance point of $83 a barrel for WTI crude, we expect oil prices to continue to trade with a negative bias,” Sakdeva said.
“Prices are likely to rebound somewhat, but in the short term, they will likely test the lower end of around $74 a barrel,” he added.
U.S. crude oil inventories (USOILC=ECI) fell 6.1 million barrels to 433.5 million barrels in the week ending Aug. 18, after analysts polled by Reuters had expected a fall of 2.8 million barrels.
“This[fall in stocks]reflects the global dynamics, with most of the cuts coming from China, where state-owned refinery capacity utilization hit a record high this month,” ANZ analysts said. This suggests that demand is healthy,” said an ANZ analyst. In a note, the study said:
But the rise in US gasoline inventories last week suggests fuel demand is weaker than expected.
Reported by Mohi Narayan of New Delhi. Additional reporting by Laura Sanicola of Washington.Editing: Jacqueline Wong
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